The Impact Of Environmental Regulation On Regional Industrial Competitiveness

The contradiction between the constraint of resources-environment and economic growth is becoming more and more prominent in the new era,and environmental problems have become the key problem that restricts the sustainable development of China's economy and society.China's "13th Five-Year Plan" clearly pointed out that "through innovative environmental management concepts and environmental governance ideas,to implement the most stringent environmental protection system",highlighting the determination of the central government to improve the ecological environment.Facing the stringent environmental regulation constraints,the enterprises that pursuiting the maximization of profit will face high compliance costs,and environmental pollution control expenditures grow with each passing day,this is bound to impact on Chinese enterprises' competitive advantage.During the critical period of industrial transformation and upgrading,will the implementation of strict environmental regulation cause adverse effect on China's regional industrial competitiveness? And how big is the impact?How to improve China's regional industrial competitiveness under environmental regulation?Based on this,this paper choose regional industrial competitiveness as the research object,analyzed the impact of environmental regulation on the regional industrial competitiveness,constructed the spatial econometric model as the empirical test,and environmental regulation policy recommendations were put to increase the China's regional industrial competitiveness.This can provide useful reference for the formulation of environmental regulation policies in the period of industrial transformation and upgrading,also helps to solve the regional imbalance in China's economic development.Thus has important practical significance.Firstly,this paper calculated the environmental regulation and regional industrial competitiveness,analyzed their temporal and spatial dynamic evolution trends and correlation.Secondly,based on the analysis of factors affecting regional industrial competitiveness,analyzed the double impact mechanism of environmental regulation on regional industrial competitiveness,and built the theory of endogenous growth model which includes human capital and material capital,etc.,and the environmental regulation was introduced into the production function as an exogenous variable,using the dynamic optimal control method,studied the impact of environmental regulation on regional industrial competitiveness under the framework of general equilibrium theory.Thirdly,tested the self-correlation of regional industrial competitiveness,and constructed the spatial dynamic panel data Durbin model,tested the influence of environmental regulation on regional industrial competitiveness empirically.Finally,estimat-ed the impact of environmental regulation on regional industrial competitiveness results for robustness test by changing the way of estimation methods.The main conclusions are as follows:First,the fitting curve of environmental regulation strength and regional industrial competitiveness provides preliminary evidence to support the Porter hypothesis.Second,the regional industrial competitiveness is influenced by natural factors,economic factors and policy factors,and environmental regulation has a double influence mechanism on regional industrial competitiveness.The general equilibrium theory research shows that regional industrial competitiveness is influenced by environmental regulation strength,labor output elasticity,efficiency coefficient of human capital accumulation,etc.Third,the regional industrial competitiveness has positive spatial autocorrelation or spatial dependence,the spatial agglomeration characteristic is obvious,and the spatial agglomeration effect of the regional industrial competitiveness has the weakening trend.Fourth,there is a significant positive spatial spillover effect on regional industrial competitiveness.Fifth,regional industrial competitiveness of a region will be affected by the past regional industrial competitiveness.The regional industrial competitiveness will have a significant positive impact on current regional industrial competitiveness,and the cumulative effect of regional industrial competitiveness cannot be ignored.Sixth,environmental regulation not only has a positive impact on regional industrial competitiveness of the region,but also has a positive spillover effect on regional industrial competitiveness of adjacent regions,this positive spillover effects will stimulate Race-to-the-Bottom.Seventh,the improvement of regional industrial capital intensity will contribute to the improvement of regional industrial competitiveness.Moreover,environmental regulation,by affecting industrial capital intensity,adversely affects the regional industrial competitiveness.Eighth,the robustness test indicates that ignoring the existence of spatial correlation will lead to an underestimate of the impact of environmental regulation on regional industrial competitiveness.Based on the conclusions of the study,some environmental regulation policy recommendations are put forward to enhance the China's regional industrial competitiveness.Such as optimizing the system environment of environmental regulation implementation,perfecting the fund guarantee and supervision and management mechanism of environmental regulation,improving the compensation mechanism of regional environmental regulation,etc.