The Impact Of Environmental Regulation On Directed Technical Change

With the continuous and in-depth study of endogenous economic growth theory,economists have begun to become aware of that technological progress in the real economic situation is biased.This biasedoften comes from satisfying human purposes.Considering the increasingly serious global environmental problems,countries are trying to transform and transfer their own pollution-intensive industries.Through moderate environmental regulation to obtain space and time for sustainable development,in the face of tremendous pressure from resources and environment,green technology innovation has become One of the important choices for countries to improve the quality of economic growth.Therefore,this paper attempts to link environmental regulation with directed technical change with a global perspective,and analyze how the economic effects of environmental regulation affect technological progress in capital and labor.This paper first reviews the domestic and foreign literatures on the directed technical change and related applications,and reviews the existing literature.Then,based on the CES production function,this paper obtains the factor substitution elasticity.The directed technical change index of the 30 sample countries from 2000 to 2015 was found to be different from the conclusions of some literatures.That is to say,most countries' sdirected technical changeis capital-intensive and directed towards labor during the sample period,and this paper explains the reasons why technological progress is biased towards labor.Then this paper draws on the method of Fu(2010)to measure the environmental regulation intensity of 30 sample countries from 2000 to 2015,and obtained the environmental regulation index of each country and conducted trend analysis.Then from the perspective of "cost" and "revenue",this paper analyzes the transmission mechanism of environmental regulation induced directed technical change and expounds the impact of environmental regulation on directed technical change from macro and micro levels.Finally,this paper establishes an econometric model of the impact of environmental regulation on directed technical change.Using the panel data of 30 sample countries from 2000 to 2015,regression analysis shows that the core explanatory variable environmental regulation index is negatively correlated with the directed technical change,that is the higher the environmental regulation index,the more directed technical change toward labor.Finally,this paper attempts to propose relevant feasibility recommendations.This paper argues that countries should pay attention to human resources,increase research and development efforts to promote technological progress and formulate efficient environmental regulation policies,strengthen the “reverse effect” of environmental regulation to enhance green innovation capabilities;then countries should improve the flexible use of environmental policies to strengthen economic structural transformation and rationally guide market structure and industrial upgrading.