The Study On The Impact Of Environmental Regulation On Industrial TFP In Hunan Province

Since China’s reform and opening up, with the continuous development of economy, our country’s industrialization process is accelerating.But the development of industrial economy inevitably bring environmental pollution.Especially in recent years, China’s most severe haze weather, is a wake-up call for our country’s environmental problems.And caused by industrial pollution of the environment as a prominent. Hunan Province, as a major economic province Chinese, occupies an important position in the economic development, Its mainly industrial economic development pattern has brought serious environmental pollution problems.How can we be able to achieve sustained economic growth in the case of the effective control of environmental pollution has become an important goal of current government policies when formulating environmental regulation to be achieved. Environmental regulation can promote or hinder the role of the problem has always been a controversial issue in academic circles for the development of industrial economy.The early economists believe that environmental regulation will increase the enterprise cost hinder the production efficiency of the enterprise, But Potter denied it.He believes that in the long term appropriate environmental regulation can stimulate the enterprises to carry out technological innovation, so as to enhance the production efficiency. Environmental regulation impact on production efficiency in different conditions have different effects. This paper in Hunan Province as the research object to evaluate the effects of environmental regulation on the industrial production efficiency.Firstly, the non parameter Malmquist index method, to calculate the TFP of Hunan Province during the period of the 13 years 2000-2012. And then it was decomposed into technical progress and efficiency change, Based on the analysis of the situation of industry of Hunan Province Economic Growth and the intrinsic factors that resulted in the changes of industrial productivity. And select the SO2 emission intensity as indicators of environmental regulation, The establishment of measurement model and industrial total factor productivity index, technical progress and efficiencychange index, The effects of environmental regulations on industrial total factor productivity. The conclusions are as follows: First, Hunan Province industrial production is efficient, the technological progress is the main factor affecting industrial productivity. Second, the whole of Hunan province environmental regulation promotes the industrial total factor productivity growth, From the regression results and measurement index of environmental regulation and the index of efficiency improvement and technological progress of view, Environmental regulation promotes the technological progress, but is not significant impact on efficiency change. This has to a certain extent, to prove the correctness of the Potter hypothesis.Finally, this paper combines the research results and put forward relevant policy suggestions, In order to provide practical reference value for the development of industrial economy in Hunan province and the implementation of environmental policies.