Empirical Study Of Impact Of Environmental Regulations On Industrial Structure Adjustment

In recent years, the contradiction between the development of the economy and the protection of the environment has been very serious. In order to ease this confliction, every country is actively developing and implementing a series of environmental regulations and policies, which is to coordinate of the growth of national economy and the protection of the environment, and then achieve a sustainable development of the economy. In China, the extensive mode of growth not only brought rapid economic development, but also lost a large number of natural resources, which cause the serious environmental pollution and damage to the ecological balance. The serious environmental problems have seriously hampered the sustained economic growth and harmonious development of society. In order to coordinate the balance between economic development and ecological environment, the government has formulated and implemented a series of policies related to environmental regulation. In addition, China is also in the process of industrial structure adjustment and restructuring. Will these environmental regulation policies and instruments affect the adjustment of industrial structure? This is a major issue to be addressed in this article.This paper reviews the domestic and international literatures which are about regulations for environmental impacting on the industrial structure adjustment. Secondly, this paper analysis the mechanism which the environmental regulations affect industrial structure. This article studies the impaction of environmental regulation on China’s industrial structure adjustment through two factors of technical innovation and foreign direct investment. Then, observing the status quo of environmental regulations and industrial structure by using the method of qualitative analysis. Finally, the empirical analysis of the mechanisms that the environmental regulations impact on the industrial structure uses the 2003-2012 panel data of 30 provinces. On this basis, drawing relevant conclusions and making relevant policy recommendations.The empirical results show: in the regression model, we use environmental pollution investment and sewage charges on behalf of the two indicators of environmental regulations and use the rate of the tertiary industry output value to the sum of the first industry and the secondary industry output value represented industrial structure optimization rate. The effect of sewage charges on the industrial structure is significantly positive. This suggests that the sewage charges impacting on industry structure is in the shape of "U". But the effect of environmental pollution investment on the industrial structure is significantly negative. This shows that with the increasing of environmental pollution investment, the trend of the industrial structure showing inverted "U". The article also points to the regional impact of environmental regulations on industrial structure. In the eastern region, the environmental pollution investment has a significant affection on the on industry structure. In the central region, the affection of the sewage charges has a significant affection on the on industry structure, but the environmental pollution investment is not significant. In the western region, the impact of both on the industrial structure is not significant. On this basis, we propose a series of related policy recommendations, such as optimizing the industrial structure, accelerating the development of diversified investment environment, improving the environmental regulation system and so on.