| The rapid economic growth over the past fourty years has increased China’s total economic output,but it has also brought serious environmental problems and hindered further economic growth.The "double carbon" target in 2015 and the high-quality economic development proposed in the report of the 19 th National Congress both put forward higher requirements for the development of industrial economy.Therefore,it is the inevitable choice to achieve high-quality development by cultivating the green development capability of industry,improving the level of Green Total Factor Productivity(GTFP),and decoupling economic development from environmental pollution.Due to the existence of market failure,governments at all levels have promulgated and implemented various environmental regulations to control environmental pollution,but some of the environmental management has been done at the expense of economic growth or transfer of highly polluting industries,which deviates from the original intention of improving the quality of economic growth.Therefore,it is worth exploring how to use environmental regulations to reduce pollution while improving GTFP.There have been many researches on the relationship between environmental regulation and industrial GTFP,but the results have not been consistent.One important reason is that the factor allocation role of environmental regulation has been neglected.It is necessary to incorporate factor allocation into the analytical framework of environmental regulation affecting industrial GTFP in order to analyze the mechanism of environmental regulation more accurately.Then,what is the role of factor allocation in the process of environmental regulation to enhance industrial GTFP? Does this role differ for different types of environmental regulations? How does the government formulate environmental regulation policies and how do firms allocate factors to improve industrial GTFP in conjunction with factor allocation?Based on environmental regulation theory,factor allocation theory and green growth theory,this paper establishes a theoretical analysis framework between environmental regulation and GTFP based on output compensation effect and innovation compensation effect by dividing enterprises into production and R&D sectors from the production function,and proposes the mechanism by which environmental regulation affects industrial GTFP by influencing the allocation of factors among sectors within enterprises and among industries,respectively.On this basis,we further elaborate the reasons for the differences in the effects of heterogeneous environmental regulations on regulatory effects and their specific manifestations.On the basis of theoretical analysis,this paper measures industrial GTFP based on panel data of industrial industries in 30 provinces,autonomous regions and municipalities in China from 2000-2017 using an unoriented EBM-ML model that includes non-consensual output.A panel Tobit mediating effect model is constructed to test whether the overall effect of environmental regulation on industrial GTFP when heterogeneity is distinguished and the mediating role of factor allocation in The model is used to test the overall effect of environmental regulations on industrial GTFP and the mediating role of factor allocation in it when heterogeneity is distinguished.It is found that there are optimal intervals for environmental regulations and factor allocation plays a mediating role.In addition,this paper constructs the air flow coefficient as an instrumental variable of environmental regulation to address the potential endogeneity problem,and further extends the above study in three aspects: synchronization of factor allocation,heterogeneity of factors,and macro mechanisms.The conclusions of this paper are as follows:(1)The output compensation generated by regulation is stronger than the innovation compensation,which is the reason why the "strong Porter hypothesis" fails in China.The strong Porter’s hypothesis fails in China because the output compensation from regulation is stronger than the innovation compensation.The factor allocation role of environmental regulation can change the optimal range of regulation and its effect on GTFP.(2)A certain intensity of command-and-control environmental regulation can improve industrial GTFP,but its improvement is very limited.Rational allocation of factors can enhance the effect of command-and-control environmental regulation on industrial GTFP and reduce the loss of economic efficiency due to excessive government intervention.(3)Rational allocation of factors can improve the inhibiting effect of high-intensity market incentive-type regulation on industrial GTFP due to China’s inadequate carbon emission trading market and high emission fees.(4)The combined use of two regulatory tools can reduce the cost of government regulation while fully mobilizing market incentives,effectively achieving the goal of using environmental policies to improve industrial GTFP.(5)Constructing the air flow coefficient as an instrumental variable of environmental regulation can alleviate the potential endogeneity problem between environmental regulation and industrial GTFP.Capital and labor are asynchronous in the factor input process,and environmental regulation will change industrial GTFP by altering the capital-labor ratio within sectors and industries.there are differences in the effects of capital and labor factor allocation on the effects of regulation,and capital restructuring is the key to enterprise transformation,while labor structural transformation is crucial to industrial transformation.The macro mechanisms by which environmental regulation affects GTFP are industrial structural upgrading and industrial shifts,but industrial shifts are unsustainable in the long run.The innovation points of this paper mainly include:(1)It reveals the "output compensation effect" and "innovation compensation effect" of environmental regulation on industrial GTFP,which improves the theory of environmental regulation and enhances the fit between theory and practice.(2)It finds the factor allocation effect of environmental regulation on industrial GTFP and the optimal range of its existence,which provides a reference for more targeted use of regulatory tools to improve industrial GTFP and achieve the goal of promoting high-quality industrial economic development.(3)It constructs an analytical framework for the effect of heterogeneous environmental regulations on GTFP through factor allocation,which improves the "narrow Porter hypothesis" and provides a theoretical basis for the study of the effect of heterogeneous regulatory tools.(4)It constructs the air flow coefficient as the instrumental variable of environmental regulation,which solves the problem that the lags of endogenous variables are difficult to determine,and makes the research results more robust and reliable. |
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