Research On The Mechanism Of Environmental Regulation Affecting Industrial Structure Adjustment

Chinese economic development has attracted a worldwide attention in the past three decades. However, with the rapid economic growth, China is facing some problems such as severe overcapacity and irrational industrial structure, which are bottlenecks to the sustainable economic development. So, it is imminent to find a new impetus to accelerate industrial structure adjustment. Under the dual pressures of resource and environmental constraints and economic transformation, many scholars began to make the environmental regulations the origin of force, and explore how to use environmental regulation to control pollution at the same time, and how can environmental regulation become a new starting point for the adjustment of industrial structure. So, what are the specific paths to promote industrial restructuring through environmental regulation? And how about the effect of its impact on the industrial structure adjustment? This paper will conduct in-depth analysis and exploration of these two issues.Firstly, this paper makes a systematic theoretical analysis about the function mechanism of environmental regulations to promote industrial structure adjustment and raises the corresponding basic assumptions. This paper argues that environmental regulation is mainly three ways to enhance the production of industrial structure adjustment:influence corporate including technology innovation decisions, entry and exit decisions, international industrial transfer decisions, and environmental consciousness of consumer. Furthermore, on the basis of analyzing the above three paths, this paper put forward the basic assumptions. Secondly it reviews China’s environmental regulations and industrial structure (?) fiinot(?) is to give a more clear and detailed description about China’s environmental regulations’background, implementation status, and the current problems of industrial structure.Further, the paper makes a empiricalanalysis to test to the basic assumptions previously proposed, and gives a quantitative analysis of the effect of environmental regulations on industrial restructuring. Specifically, through using the data of 30 provinces in China from 2001-2012, this paper constructs five panel models:four of them are about the environmental regulation and intermediate variables, and the other is about intermediate variables and industrial structure adjustment. Then some sub-regional tests are taken, and the standard of area is the level of economic development.The results show that the conduction path exists when environmental regulation readjusting industrial structure through technological innovation, transfer of industries and the enter strategy of enterprise, but the conduction path do not exist when environmental regulation readjusting industrial structure by acting on consumer awareness of environmental protection. Specifically, environmental regulation can promote industrial restructuring by the enter strategy of enterprise, the role of coefficient is 0.0902; technological innovation and industrial transfer are not conducive to the adjustment of industrial structure, the role of coefficient is-0.3366 and-0.0038. Finally, the conclusion of this article will be given.