Study On Crowding-In And Crowding-Out Effects Of Government Environmental Protection Expenditure On Corporate Environmental Protection Investment

To drive corporate environmental protection investment,the government environmental protection investment has a crowding-in and crowding-out effect on corporate environmental protection investment.According to the corporate environmental investment response,a strategic government environmental expenditure arrangement can be made to enable government environmental protection funds with scarcity characteristics to achieve “Drive” efficiency.The core issue of this thesis is to explore “when the government environmental protection expenditures increase,whether it will drive corporate environmental protection investment,whether it will occupy the corporate environmental investment space and what kind of environmental investment strategy the government adopts can effectively promote corporate environmental protection investment”.Around this core issue,the paper follows the logical path which is “problem-analysis of crowding-in and crowding-out mechanism – form theoretical judgments and assumptions-preliminary covariant statistical observation between explanatory variables and explained variables-empirical test of theoretical hypothesis-based on conclusions,give suggestion”.Based on externalities,public goods,corporate social responsibility and other theories,the paper analyzes the impact of government environmental protection expenditure on corporate environmental protection investment;constructs a theoretical model of the impact of government environmental protection expenditure on corporate environmental protection investment,and analyzes the theoretical meaning of the next and second order conditions based on the “U-shaped” structural relationship model.In this study,the “investment in industrial pollution source accounted for the proportion of investment in environmental pollution control” was selected as the explained variable.“Government energy conservation and environmental protection expenditure accounted for the proportion of fiscal expenditure” as the core explanatory variable,and the panel data of 30 regions from 2007 to 2016 were selected.The GMM dynamic panel data model was used to estimate and test the impact of government energy conservation and environmental protection expenditures on corporate environmental protection investment.It also examines the differences between region and time.The theoretical analysis shows that the government environmental protection expenditure has both crowding-in and crowd-out effects on corporate environmental protection investment;it can make assumptions the impact of government environmental protection expenditure on corporate environmental protection investment is the “U-shaped” structure.The empirical results show that the quadratic model test results support the government environmental protection expenditure has a “U-shaped” structure effect on corporate environmental protection investment.The first-order condition of the model shows that “the government's environmental protection expenditure accounts for the fiscal expenditure” is 4.75%,which is the demarcation point that the effect on corporate environmental protection investment from crowding-out to crowding-in;At the current,the crowding-out effect of government energy conservation and environmental protection expenditure on corporate environmental protection investment is generally more significant.The empirical test results based on the different region show that the period difference of government environmental protection expenditure on the corporate environmental investment is due to the adjustment of fiscal policy.To sum up,this study proposes that to drive the corporate environmental protection investment,the government's environmental protection expenditure level needs to reach the right side of the demarcation point of the crowding-in and crowding-out effect;in order to enhance the crowding-in effect of government's environmental protection on corporate environmental investment,it needs to increase the investment level of government environmental protection funds,expand environmental investment and financing channels,reduce the information asymmetry of corporate environmental investment and financing activities,and consummate supporting measures.