Government Intervention,Environmental Regulation And Green Total Factor Productivity

With the rapid development of China's economy,the problem of excessive consumption of resources and environmental pollution has also become increasingly prominent.These two major issues have become an important factor that hinders the sustainable development of China's economy.Total factor productivity,namely "Solo residual value," is the degree of contribution to the quality of economic development and is the part of economic growth that removes capital and labor input.On the basis of this,green total factor productivity incorporates environmental factors into the measurement system and then more comprehensively reflects the quality of economic development.Therefore,how to increase green total factor productivity and how the government can properly play the role of “invisible hand” is the key to achieving a green transformation and achieving sustainable development.This paper is based on the SBM direction distance function and Malmquist Luenberger productivity index,and then calculate the GTFP indicators of 30 provinces in China,with industrial waste water and gas emissions as unexpected outputs included in the calculation process.Our research is further extended by regression GTFP to government intervention,environment regulation and their interaction effect.The main findings are as follows: within a certain range,the level of environmental regulation Improvement can effectively promote the improvement of green total factor productivity.However,once a certain threshold is exceeded,this positive promotion will be weakened,which just validates the “strong Potter hypothesis”.On the one hand,in regions with lower levels of government intervention,the government is more inclined to gradually guide enterprises to carry out pollution control,and environmental regulation means tend to be more market-oriented,which in turn is more conducive to the improvement of green total factor productivity;on the other hand,The lower the degree of government intervention in the market,market development more perfect,enterprise investment cost is relatively lower,and more conducive to enterprise green technology innovation,which makes the enterprise can take the initiative to deal with the environmental regulation level and higher requirements,which is conducive to the green total factor productivity.In short,whether it is passively accepting the improvement of the level of environmental regulation or actively responding to the higher requirements of environmental regulation,the smaller the government's intervention in the market is,the more it will be beneficial to the improvement of total factor productivity.According to the results of this study,the following three policy recommendations are proposed for reference: First,increase investment in technological innovation,and actively guide enterprises to carry out green technology innovation;Second,implement differentiated environmental regulation intensity according to local conditions;Third,the government should continue to maintain Good regulation and control,let the market mechanism give full play to the regulatory power.