Dual Effects Of Environmental Regulation On Economic Growth

With the continuous expansion of China’s total economy,the growing environmental problems has brought tremendous pressure on the sustained economic development.In order to alleviate the increasingly serious environmental problems,national and local governments have adopted a series of environmental regulation measures that have achieved some success in controlling pollution.However,whether stringent environmental regulation will affect technological innovation,industrial structure and FDI,The impact of the economic performance of the entire region is very worthy of study.And this is also the problem to be solved.On the one hand,the transmission mechanism of environmental regulation affects the economic growth is researched.On the basis of combing the environmental regulation a nd economic growth,technological innovation,industrial structure and FDI,this paper studies the transmission mechanism which affects the economic growth from two aspects.First,environmental regulation through direct increase in production costs on the economic growth have a direct effect,the second is based on technological innovation,industrial structure and FDI three intermediary variables on the indirect role of economic growth.Through these two aspects of analysis,to obtain the direct and indirect effects of environmental regulation on economic growth.And the establishment of direct and indirect panel model to test the role of environmental regulation on economic growth.On the other hand,in order to show that there is a nonlinear relationship between environmental regulation and economic growth in China,the threshold model of environmental regulation,technological innovation,industrial structure and FDI as threshold variables is established to test the impact of environmental regulation on the economy.The study shows that the effect of environmental regulation on economic growth is "U" type curve,and with the different level of technological innovation,industrial structure and FDI,environmental regulation has different effects on economic growth from inhibition to promotion or promotion to inhibition.Finally,according to the conclusions of the empirical test for China to achieve sustainable development of the economy to provide relevant policy recommendations.