Study On Environmental Regulation,Eco-innovation Investment And Enterprise Performance

In recent years,haze weather is becoming increasingly serious,which attracts worldwide attention.In order to promote the sustainable development of economy,it is very urgent to solve environmental problems for Chinese government.Environmental protection tax law of the People's Republic of China will be performed on January First 2018,which is the first single tax law that embodies“green tax system” specially and promotes the construction of ecological civilization,which shows determination of improving environmental quality in China.In this situation,enterprises will face tougher environmental regulation.Environmental regulation will hinder eco-innovation investment and enterprise performance by increasing production costs from traditional view.W hile according to poter hypothesis theory,reasonable environmental regulation can promote eco-innovation investment,produce innovation compensation and improve enterprise performance.However.there is no consistent conclusion among environmental regulation,eco-innovation investment and enterprise performance in previous studies.Therefore,it is necessary to study the mechanism among them further.This article summarizes the related literature at home and abroad,defines the environmental regulation and analyzes the Poter hypothesis.On the basis of game theory and induction of technological progress theory,with provincial scale above industry data between 2005 and 2014,we study the relationship among environmental regulation,eco-innovation investment and enterprise performance and study the role of eco-innovation investment in environmental regulation and enterprise performance.Conclusions are as follows:(1)Overall.there exisit U-shaped relationship between environmental regulation and eco-innovation investment.Environmental regulation is not conducive to the eco-innovation investment in eastern region in the short term,but in the long run,environmental regulation can promote eco-innovation investment.In terms of central and western regions,no matter in the long term or short term,environmental regulation hinder eco-innovation investment.In terms of industry,environmental regulation has a positive role to the enterprise performance in the high levels of pollution,it presents U-shape relationship in moderate pollution,there is no significant positive correlation in the light pollution industry.(2)Overall.there exisits lagged effect between environmental regulation and enterprise performance.Environmental regulation is conducive to improve the enterprise performance in eastern region,there is no obvious lagged effect.In central region,the correlation is not obvious between environmental regulation and enterprise performance in the current,there exisits significantly positive correlation in the lagged term.In western region,environmental regulation forces firms adversely affect enterprise performance,however as time goes on,negative relationship declines.In terms of industry,environmental regulation has a significant effect on enterprise performance in high industries.Environmental regulation hinders enterprise performance in moderate pollution industries in the current time,the relationship is not significant in the lagged term.The negative relationship is not obvious between environmental regulation and enterprise performance.(3)Eco-innovation investment plays partial mediating role between environmental regulation and enterprise performance.Finally,we put forward suggestions from perspective of state,enterprises and the public.