Studies On The Impact Of Energy Price Distortion And Environmental Regulation To Environmental Quality

At present,most areas of China have emerged haze weather,especially in economically developed areas.The problem of environmental pollution has become a hot topic in our country,and it is urgent to alleviate the ecological deficit and worsen the environment.Environmental regulation is an important means to improve the quality of the environment,while the rapid development of China’s industrial energy consumption,the price distortion caused by the non price of energy market is inevitable to aggravate the environmental pollution.Environmental regulation has an effect on environmental quality and energy price distortion has a negative impact on the quality of the environment,so how to influence the quality of the environment by the two factors needs a further study.This paper focuses on the effect of environmental quality in two factors,and the development prospect of environmental will be affected by the inertia of energy price distortion,economic level,industrial structure and system.First of all,the classical Douglas production function method is used to calculate the energy price distortions in our country.The results show that the energy price distortions exist in all parts of china and both are negative distortions,energy prices lower than the actual value.The eastern region has the highest energy price distortions and the western region is relatively low.And over the past decade,the degree of price distortions in different regions showed a downward trend.The results of environmental regulation show that the intensity of regulation is increasing in all regions of the country,but the level of environmental regulation is not high.In recent years,the growth rate has slowed down or even weakened,it indicates that the importance of environmental regulation in China needs to be strengthened.In the empirical part,the panel measurement model with cross items is chosen to measure the effect of the interaction of the two factors on the environmental quality.Based on the static panel fixed effect model,the empirical results show that the existence of distortions in energy prices weakens the positive effect of environmental regulation,environmental regulation and energy price distortions showed a U effect on the interaction of environmental quality.Based on the empirical results of the GMM model,we find that the environmental pollution caused by the dependent variable has a negative effect in the short term,which affects the quality of the next period.The interaction of the two factors also show a U type effect,and now our country is in the key stage of the transition,began to promote the improvement of environmental quality.The conclusions of the two econometric models are basically the same.Therefore,we believe that the two factors on the environment together to deepen the environmental pollution,with the strengthening of environmental regulation and the weakening of energy price distortions began to improve the quality of the environment.The eastern region has passed the turning point,the environmental regulation is dominant.Midwest regions have not yet passed the inflection point,the factor price distortions play a leading role.At present,our country is in a turning point,it is very important to pay attention to the comprehensive function of environmental regulation and various factors to improve the environmental quality of our country.