Research On The Effect Of Environmental Regulation On China’s Industrial GTFP

Since the 21st century,China’s extensive industrial development model has caused increasingly severe problems such as resource constraints and environmental pollution.In order to achieve the dual goals of intensive industrial development and green and low-carbon development,it is imperative for China to enter the road of industrial green and low-carbon development.And comprehensively improving the Green Total Factor Productivity(GTFP)of Chinese industry is an important hub on the road to the transformation of Chinese industry into a green development mode.Scientific environmental regulation can promote the continuous improvement of industrial GTFP.Therefore,the Chinese government regulates the production and living behavior of industrial units through command-control environmental regulation,or makes reasonable allocation of resources with the flexible characteristics of the market through market-motivated environmental regulation,so as to ensure the evolution of industrial sectors into green and low-carbon mode.However,how to make efficient and scientific environmental regulation? What kind of environmental regulation can effectively improve the current level of industrial green development in China? What is the synergistic effect of constraint and incentive mechanism implemented by the government in the process of industrialization? Under the background that our country enters the new industrialization stage and makes every effort to industry green transforming at present the above questions urgently await to answer.Based on the above background,China’s industrial Green Total Factor Productivity(GTFP)respectively by the central environmental protection supervision system and carbon emissions trading policy as command control and market incentive environmental regulation policy of typical representative to explore the influence of environmental regulation on industrial GTFP effects,and differentiate the synergy of two kinds of environmental regulation,It provides reference for government departments to issue scientific and efficient environmental regulation according to the current industrial economic development situation.The main research contents are as follows:(1)The Super-SBM measurement model considering undesired output and the Malmquist-Luenberger productivity index were used to measure the industrial GTFP of each province,which was decomposed into Green Technology Efficiency Change(GEFFCH)and Green Technology Change(GTECH).It also explores the evolution characteristics of industrial GTFP and its decomposition factors from two perspectives:national and regional,and two dimensions: time and space.(2)The central Environmental supervision system,a typical command-controlled environmental regulation,was selected to identify the impact of the central environmental supervision system on China’s industrial GTFP by using breakpoint regression discontinuity(RD).The optimal bandwidth was selected for estimation,and a variety of bandwidths were used for robustness test.(3)Select a typical market-based incentive environmental regulation--carbon emission trading policy,construct a difference-difference model(DID)to test the impact of the policy on China’s industrial GTFP,and further construct a dynamic difference-difference method to explore whether there is a dynamic effect.(4)A dynamic panel model was established as the basic regression,and the two-step system generalized method of moments(SYS-GMM)was used to identify the dynamic synergistic effect of the joint implementation of command-and-control and marketincentive environmental regulations on industrial GTFP.Meanwhile,the dynamic evolution effect of China’s industrial GTFP was tested,and the endogeneity of environmental regulations was investigated.Based on the above empirical analysis,the following main conclusions are drawn:(1)From 2005 to 2020,the average value of industrial GTFP in China showed an upward trend,and green technology progress was the source of its growth.Specifically,from the perspective of horizontal evolution,the spatial distribution map of regional nuclear density showed a trend of decreasing the height of the main peak and increasing the width of the curve,indicating that the degree of polarization continued to decline.From the perspective of space,the Moran’s I value was negative in the early stage,and changed from negative to positive since 2014,indicating that the positive correlation of spatial distribution slowly improved with the time.In 2019,L-H agglomeration(hollow type)began to decrease,and was replaced by L-L agglomeration(efficient type)and HH agglomeration(inefficient area),showing positive spatial correlation as a whole.In terms of convergence characteristics,there is no significant σ convergence phenomenon,but there is an absolute β convergence trend in regional industrial GTFP in China.(2)The implementation of the central environmental supervision system has breakpoints for GTFP,GEFFCH and GTECH.The central environmental supervision system has a significant effect on industrial GTFP,GTECH is the main traction force of the growth path,and has a significant negative impact on green technology efficiency.(3)The implementation of carbon emission trading policy can improve industrial GTFP by promoting regional industrial GTECH to a certain extent;The dynamic DID model proves that the policy has dynamic effect,which has obvious phase characteristics around 2016.(4)China’s industrial GTFP is susceptible to its own early impact and has obvious inertia characteristics.The joint implementation of the two types of environmental regulations has a long-term mechanism to promote the growth of industrial GTFP,which still has good robustness after the endogeneity test.Further heterogeneity analysis shows that the synergistic effect of environmental regulation in the central and provincial regions is more obvious,while the synergistic effect of environmental regulation in the western region needs to be enhanced.The possible innovation points of this paper are as follows:(1)Construct a dynamic Differences-in-Differences(DID)model to explore the dynamic impact of typical market-oriented environmental regulation policies on industrial GTFP,and further consider the sustained impact of policy implementation effects.(2)under the analytical framework of incentive constraints,the use of two-step system generalized method of moments(SYS-GMM)more fully explores the command control and market incentive environmental regulation to our country industrial GTFP dynamic synergies,and the effect test of dynamic evolution of China’s industrial GTFP,examines the environmental regulation empirical endogenous problems easy to overlook.