Research On The Impact Of Environmental Regulation On Industrial Structure Adjustment

The contradiction between economic development and environmental protection came to the public as one of most serious problems recently.Each country tries their best to find the effective method to solve the confliction.Since 1978,for the sake of numerous natural resources,the extensive mode of economic development gave the great backup to the quick development of economy.However,environmental damage and pollution came with the economic growth.Increasingly prominent environmental problems seriously hampered the sustainable economic growth and society stability.To solve the confliction,government designs a series of relevant environmental policies and solution.At the same time,there are numerous adjustment and promotion of industrial structure.Does the fact that development of environmental regulation and industrial structure almost synchronize mean there is a certain correlation between them? And by which way environmental regulation influences the adjustment of industrial structure? Does environmental regulation have the same effect on inter industry structural adjustment and intra industry structural adjustment? These questions will be the major problems which will be discussed in this article.Based on the review of related literature and background,paper lists the definition of environmental regulation and industrial structure adjustment in the first chapter.In addition,this paper also introduces some relevant theory about the relationship between environmental regulation and innovation or industrial transfer.The paper discusses the specific way how environmental regulation influences industrial structure adjustment,especially from the angle of innovation and entry barriers.In order to analyze the current situation about environmental regulation and industrial structure,the third chapter compares the changes in the recent 15 years in the fields of environmental systems,investment of environmental pollution control and environmental laws.The next part is the central section of this paper which conducts empirical verification on the relationship between environmental regulation and industrial structure adjustment,especially from the entry barriers,innovation and foreign direct investment.Result shows innovation has the most important effect on the relationship between the environment regulation and industrial structure adjustment,which also provides the evidence to Porter hypothesis.The next part is the model between environmental regulation and inter-industrial structure with the data of manufacture industry.Last part of this paper is mainly about the advice after the study of empirical analysis and theoretical analysis,such as to improve the entry barriers to polish the effects of environmental regulation;reduce the cost of environmental regulation to cut the crowding out effects of innovation;improve the standards of regulations to attractive more foreign direct investment;conduct the action of environmental regulation based on the local situation to achieve the win-win result about environment and economy.