An Empirical Analysis Of The Impact Of Environmental Regulation On Enterprise Survival

Strict environmental regulations require enterprises to improve the utilization efficiency of production factors,improve technological innovation,and strengthen pollution control.In the case of limited resource constraints,this must force enterprises to trade off between environmental investment and production investment;as a profitable entity,under the goal of maximizing profit,the result of the trade-off of the enterprise may affect the environmental regulation effect,and also The impact of business performance,which affects the duration of the business in turn.As a cell of social and economic activities,this paper believes that environmental regulation should help to extend the duration of the enterprise while improving environmental performance,thereby achieving a win-win situation for both the enterprise and the society,and achieving the improvement of the total social welfare.This is also the significance of this study.Environmental regulation has an important impact on business productivity,which may affect the duration of the business in turn.Based on the 2003-2007 Chinese industrial enterprise data,at first,this paper uses SFA to calculate the total factor productivity(TFP)of the enterprise,and then decomposes it into four components: scale effect SEC,technological progress TC,factor allocation efficiency change FAEC and technical efficiency TEC.At the same time,the comprehensive index method is used to estimate the environmental regulation intensity of the industry in which the industrial enterprise belongs.Finally,the linear probability Probit and COX models are used to estimate the mediating effect of environmental regulation on the survival of the enterprise through the action of TFP.The results show that,on the one hand,environmental regulation significantly hinders the scale effect of enterprises and the improvement of technical efficiency.On the other hand,it promotes technological advancement and optimizes the efficiency of factor allocation.In general,environmental regulation enhances corporate TFP and the effect of this improvement has a positive effect on the duration of the business.The policy implications of this paper are: the government should encourage enterprises to innovate,improve their technical level,and improve the efficiency of the allocation of production factors.At the same time,enterprises should also choose the most suitable production scale,thereby extending the life expectancy of enterprises in the market and achieving enterprises and society a win-win situation.