The Impact Of Environmental Regulation On Firms Location Choice

With the world’s growing population and fast developing economies, The destruction of the ecological environment is increasing on the scope and extent. It cause great negative impact on human life and sustainable economy, which attracts more and more attention. Faced with an increasingly serious environmental pollution and strong public pressure, Government of many countries have taken a series of measures to regulate the ecological environment, such as the introduction of appropriate environmental regulations and to take all kinds of pollution charge system, and achieves some certain results. But after taking these environmental regulation policy, what effect it will be to the enterprise vendors that play a major driver of economic development, what reaction it will be when facing these regulatory policies. What measures should be taken in response to these reactions from government. This is the theme of this paper is to conduct research.Firstly, we started the research from the literature review, and we conducted a comprehensive combination with environmental regulation and manufacturers location choice home and abroad in recent years.From the combination, I understood the current research status on environmental regulations and manufacturers location selection, and got a lot of interesting revelations and some very constructive methods from those seniors. It provides a great help and guidance to the study on the environmental regulation and firms location choice questions.The third chapter the author mainly conducted a in-depth research on the evolution of environmental regulation course. Through a lot of intuitive data, tables and trends, we can grasp the situation that our country’s history of environmental regulation and the current regulatory context, getting a better understanding about research course below.In the theoretical analysis that the impact of environmental regulation on firms choosing the location, previous studies are not enough, and relevant research results are not mature enough. The author at the time of their theoretical model was constructed, using the Spatial Economics famous core-periphery model, and creatively introduced the costs of environmental regulation into the model. Through rigorous and detailed mathematical derivation, revealing the impact of environmental regulation on firms location choice. When a small environmental regulation efforts, the gathering of vendors will not have much impact. With increasing environmental regulation efforts, the concentration degree of vendors will be weakened, Manufacturers will choose to migrate to the more dispersed areas, so that exists between environmental regulation and vendors gather is a negative relationship, especially the greater negative impact on the environmental regulation of the industry by the more sensitive.After derivating theory, the author make use of Chinese panel data between2003-2012, this conclusion empirically, consistent with the empirical results with expectations, and the author further by dividing the eastern, central and western regions to expand more detailed study and discussion,(1) For different regions, the impact of environmental regulation on firms location choice is different, in the central region, the impact of environmental regulation on firms location choice is large, in the eastern and western regions is less impact on the vendor location choice.(2) In the eastern region, although the intensity of the larger environmental regulation, but because companies have a better upgrade, so the impact on small, and the late development of the central region, and the industrial sector of high pollution, high energy consumption enterprises proportion is larger, more slowly transform them, suffered a greater impact of environmental regulation. Although the development of the western region late, but the majority of the lower total industry and region suffered the impact of environmental regulations is also smaller.(3) The central region suffered a greater impact because of environmental regulation efforts, companies have a tendency to shift into the western region, which also should pay close attention to the western region, how to find a reasonable balance between environmental regulation and economic development is crucial. After finishing the author through the relevant policy recommendations was also listed in the text, hoping to develop our economy better and faster to make some modest power.