The Environmental Regulation’s Impact On Economic Growth Of China And Mediating Effect Research

Due to some characteristics of environmental public goods, in order to completely solve the increasingly serious environmental pollution problems, it’s necessary for government at all levels to take various types of environmental regulation measures. However, if the environmental regulation hinders economic growth, then the government will be caught in a dilemma to make a choice between environmental protection and economic development, actually, high priority is given to the economic development. If environmental regulation and economic growth can have both, they are not in conflict, then the government will spare no effort to handle the pollution and protect environment. Based on the above analysis, by solving the balanced growth path, this paper verifies environmental regulation’s effect on economic growth from two aspects of theoretical and empirical analysis, and mediating effect test was used to study the conduction mechanism:economic growth can be affected by environmental regulation by improving the level of technology advancement, or by improving the residents’ health so as to improve the level of health human capital. Finally, combining the empirical results and problems of domestic environmental regulation, this paper puts forward the reasonable policy recommendations.This thesis mainly focuses on environmental regulation policy from the perspective of investments and fees, including investments on pollution and pollution discharge fees. The empirical test results can be summarized as the following three points:(1) the current domestic investments on pollution already have played an important role in promoting economic growth, but pollution discharge fees have no significant impact on economic growth. The results of east and central china tend to be same as overall result, and west China is opposite. (2) the mechanism has been in an embryonic stage to promote economic growth through health human capital coming from environmental regulation, and the past environmental regulation policy has weak function to improve the health of the residents, (3) the mechanism has been initially formed to promote economic growth through technological progress, and Porter Hypothesis has gradually fulfilled in China, compared with health human capital, this kind of mechanism is stronger.The main innovation points are:this paper introduces health human capital and the passive technical progress into the model, discussing transmission mechanism of environmental regulation’s impact on economic growth from two aspects of theory and empirical test, which especially enriches empirical research, and makes a preliminary judgment for the stage of China’s environmental regulation’s impact on economic growth. Of course, this paper mainly studies the economical environmental regulation, and other types not too much involved in, meanwhile, technological progress can be further subdivided into production technology progress and the technological progress of the pollution treatment, which also are not involved due to space limitations, there are further researching space.