The Impact Of Environmental Regulation On Firms’ Total Factor Productivity In China

China’s gross domestic product(GDP)in 2016 was 74.41 trillion yuan(RMB),economic growth rate is 6.7%,C hina is the world’s second largest economy.After the reform and opening up,China’s economic development is very rapid.In the last 40 years,C hina’s economy has grown at an average annual rate of about 9.6%,which is the country with faster economic growth in the world.However,C hina’s rapid economic growth,mainly dependent on high input,high energy consumption and high pollution,economic growth process accompa nied by severe environmental pollution problems.In recent years,the Chinese government has gradually realized the seriousness of the problem of environmental pollution.Therefore,a number of measures have been put forward to deal with the severe environmental pollution.The government has implemented strict environmental regulation policies for polluting enterprises.The history of the most stringent environmental law promulgated in 2015,proposed to legalize the pollution problem,according to the law a nd strict pollution control.Then the state introduced the environmental regulation policy,how will affect the production and operation of enterprises,is a worthy of study.Based on the theory of "Porter theory",Through a large number of literature to find out the key factors affecting the total factor productivity of enterprises,And the empirical model of this paper is obtained by drawing lessons from the regression model of the previous scholars and combining the factors that affect the total factor productivity of the enterprise.In this paper,the listed companies A shares of industrial enterprises as a sample data,combined with the Urban Statistical Yearbook and Environmental Statistical Yearbook data for empirical analysis.This paper first analyzes the influence of industry environmental regulation on the total factor productivity of enterprises,and finds out the relationship between them to meet the results of "Porter Theory".Then it analyzes the transmission mechanism of industry environmental regulation on the whole factor productivity of enterprises,According to the different degree of pollution in the industry,all enterprises are divided into high-polluting industries and low-polluting industries,and then to their empirical return to verify whether different industries will lead to differences in the results of regression,However,for the study of regional environmental regulation affect the total factor productivity of enterprises,First of all,the empirical analysis of the relationship between the two,and then take into account the differences in the industry,empirical analysis of the differences in the results of the industry impact,and draw the relevant conclusions.The conclusions of this paper are as follows:(1)There is an "inverted U" relationship between the environmental regulation and the total factor productivity of the enterprise,that is,the moderate environmental regulation can promote the improvement of the total factor productivity,When the intensity of environmental regulation exceeds the limits that the enterprise can afford,it will hinder the improvement of the total factor productivity of the enterprise.Industry environmental regulation affects the productivity of the enterprise by influencing the technological innovation of the enterprise.Low pollution industry to reach the "inverted U" curve of the inflection point earlier than the high pollution industry,so for different pollution intensity of the industry should implement different environmental regulatory policies.Regional differences also affect the original regression results.(2)There is a "U-type" relationship between the regional environmental regulation and the total factor productivity of the enterprise.The difference of the industry will also have some influence on the regression result.