The Research On The Influence Of The Overcapacity On China’s Environment In Open Economy

Overcapacity is one of the difficulties faced by China’s economic development.Furthermore,the world economy has entered the stage of deep transformation and adjustment,the complex external environment has further exacerbated our country’s overcapacity.At the same time,the problem of environmental pollution is increasingly serious.Otherwise some industries with excess capacity have more serious environmental pollution problems,and overcapacity often leads to more serious environmental pollution problems.Therefore,from the perspective of excess capacity,the thesis studies the environmental pollution problem of China’s overcapacity in the open economy.Based on the environmental pollution and overcapacity of 31 provinces from 2000 to2015,the thesis uses the fixed effect and the tool variable method to make an empirical study by measuring the comprehensive index of environmental pollution and the utilization of production capacity.After incorporating some control variables,the results show that overcapacity has an impact on China’s environment.The lower the utilization rate of capacity is,the more serious the excess capacity is,the more serious environmental pollution is in China.Moreover,The improvement of capacity utilization will help to alleviate environmental pollution level in China.From the perspective of open economy,31 provinces in China are divided to find that overcapacity has a greater impact on environmental pollution in areas with high openness.Based on the above conclusions,a series of countermeasures and suggestions are put forward to better coordinate the relationship between China’s economic growth and environmental development.Although the thesis tries to clarify the mechanism of overcapacity and environmental pollution,it has been verified from the empirical aspect.However,because of the seriousness and complexity of environmental pollution problems in China,there are still limitations in the perspective of research,so we need to further explore in accordance with the characteristics and background of our country’s economic operation.