Research On The Impact Of Environmental Regulation On China's Economic Growth

The report of the 19 th National Congress clearly pointed out the importance of green development for China's economic development.This shows the central government's determination to protect the environment and the important strategic position of environmental protection.How to use existing natural resources to achieve sustainable development that is achieving a win-win situation between economic growth and environmental protection is a realistic problem that the Chinese government urgently needs to solve.Because environmental products have the characteristics of public goods,they cannot completely rely on market regulation mechanisms to solve environmental problems,and environmental regulations are needed to compensate for market failures.Although the formulation of various environmental regulations can constrain corporate behavior to effectively alleviate pollution problems,the impact of environmental regulation on economic growth has not yet reached a consensus conclusion in the academic community.This is the main problem that this article needs to analyze.This paper first reviews the related theories of environmental regulation,economic growth and fiscal decentralization,and summarizes the relevant literatures on the relationship between environmental regulation and economic growth.On this basis,the panel vector autoregressive model is established by using the inter-provincial panel data of China from 2006 to 2016,and the dynamic relationship between environmental regulation and economic growth is explored by using impulse response function model and variance decomposition.In addition,based on the research ideas of fiscal decentralization grouping,this paper constructs the regional panel data of China's 2006-2016 fiscal decentralization and low fiscal decentralization,and uses PVAR model to compare and analyze its dynamic relationship.It is found that environmental regulation has a significant role in promoting China's economy,and once again verified the effectiveness of the "Porter Hypothesis" in China.However,the economic effects of environmental regulation in areas with low fiscal decentralization are higher than those with high fiscal decentralization.This shows that fiscal decentralization weakens the economic effects of environmental regulation.The policy enlightenment is: the intensity of environmental regulation should be appropriately enhanced,and the weight of ecological indicators in the evaluation of local government performance indicators system should be improved.