A Study On The Influence Of Local Governments' Environmental Governance On Industrial Structure Upgrading

Since the reform and opening up,China's economic construction has made remarkable achievements.But the past economic growth mainly depended on factor input,and the extensive economic growth has resulted in obvious environmental problems.With China's economy changing from high-speed growth stage to high-quality development stage,it is an inevitable choice to promote the transformation and upgrading of our industrial structure.The environmental governance of local government can drive the continuous adjustment of industrial structure by eliminating the fittest,promoting economic growth from factors and demographic dividends to innovation and human capital.In view of this,this paper takes three main environmental governance measures of local government as the research object,including environmental protection financial expenditure,order-controlled environmental regulation and market-motivated environmental regulation,to explore the impact of various environmental governance measures on industrial structure upgrading.Then provide reference for further optimizing local government environmental governance in order to achieve a win-win situation of "emission reduction" and "efficiency enhancement".Firstly,this paper reviews the domestic and foreign research on environmental governance,industrial structure upgrading and their relationship.On this basis,analyze the theoretical basis of local government intervention in the field of environment and the impact mechanism of local government environmental governance on industrial structure upgrading.Secondly,comb the situation of industrial structure in different stages of environmental governance.The relationship of local government environmental governance and the upgrading of industrial structure are preliminarily found.Lastly,analyze the implementation status of three environmental governance measures,namely,local government environmental fiscal expenditure,order-controlled environmental regulation and market-motivated environmental regulation.Based on the previous analysis,this paper tests the impact of environmental protection fiscal expenditure,environmental administrative penalty as the representative of the command-controlled environmental regulation and pollution discharge as the representative of market-motivated environmental regulation on the upgrading of industrial structure,useing the data of 30 provincial administrative regions in China from 2007 to2016.The empirical results show that:(1)fiscal expenditure on environmental protection has played a positive role in promoting the process of industrial structure upgrading in China,and has a significant positive impact on technological innovation.(2)There is a U-shaped relationship between environmental regulation and the upgrading of industrial structure.At present,both command-controlled environmental regulation and market-motivated environmental regulation are on the left side of the inflection point,which is not conducive to the upgrading of industrial structure.(3)Market-motivated environmental regulation has a stronger incentive effect on technological innovation than command-controlled environmental regulation.In the long run,market-motivated environmental regulation can promote the upgrading of industrial structure by stimulating technological innovation of enterprises.However,the innovation incentive effect of command-controlled environmental regulation is not significant,which mainly affects the industrial structure by driving the flow of production factors.On the basis of the empirical conclusion,this paper puts forward relevant policy suggestions from four aspects: defining the division of environmental powers,optimizing local government's fiscal expenditure mechanism for environmental protection,perfecting local government's order-control environmental regulation system,and perfecting local government's market-motivated environmental regulation system,so as to provide reference for optimizing local government's environmental governance path,so as to promote the coordination between economy and environment.