The Impact Of Environmental Regulation Strength On China’s Export

Since the reform and opening up,China’s export has played a powerful role in promoting the sustained growth of economy.In 2018,China’s export trade volume achieved a new breakthrough of 2.48 trillion US dollars,injecting impetus into China’s high-quality development.However,due to the outstanding environmental retention problems caused by the traditional extensive model in the early stages of development,the current environmental pollution problems continue to emerge,and China has strengthened its environmental regulations.At the same time,the external environment of the trade is erratic,and environmental regulations cause uncertainty in China’s export.So,has environmental regulation suppressed China’s export growth? Or should enterprises take this opportunity to optimize innovation and stimulate export development? Both need further theoretical and empirical analysis and exploration.Based on this,this article aims to explain the mechanism of environmental regulations on export,and empirically analyze the possible non-linear relationship of environmental regulations of different strengths to China’s export.Providing corresponding theoretical and practical basis for the environmental regulations system,and the coordination of the contradiction between environmental protection and export.With the progress and improvement of society,China’s export has developed rapidly,and the forms of environmental regulations have become more diverse.This article analyzes the development status of China’s environmental regulations and export with the help of indicators such as China’s export volume,export growth rate,TC index,and environmental regulations index.Different analysis perspectives such as consumer preferences elaborated on the mechanism of environmental regulations on China’s export.On this basis,considering the possible cumulative effect of environmental regulations,increasing the intensity of environmental regulations to a certain level will affect the enterprise’s production decisions and thus produce structural mutations in export.In this paper,a panel threshold model with environmental regulations as the threshold variable is constructed and included control variables such as economic development level,foreign direct investment and human capital are expected to seek the impact of different environmental regulations on China’s export.Afterwards,remove the sample data of some regions for robustness test to improve the accuracy and credibility of the benchmark model.It is found that the enhancement of environmental regulations have a structural mutation on the development of China’s export,and there is a significant single threshold effect between the two.It shows a "V"-shaped nonlinear relationship.Before the environmental regulations reach the threshold,the strengthening of environmental regulations will have an inhibitory effect on China’s export.At this stage,the enterprise’s "following cost effect" occupies the main position.Environmental regulations trigger the increase in the cost of corporate pollution control and profitability.The squeeze of funds will restrict the improvement of the products’ quality and competitiveness.Enterprises will choose to internalize pollution costs and passively accept strict environmental constraints,which will adversely affect export.After the environmental regulations cross the threshold,the enhancement of environmental regulations will have a positive effect on export.At this stage,the enterprise’s "innovation compensation effect" plays a role.With the development of the economy and society,companies gradually realize the environmental regulations will stay long and will change from inaction or passive resistance at the initial stage to having to or actively invest in R & D and innovation of technology,so that the excessive benefits brought by technological upgrades make up for the increase in enterprise costs caused by environmental regulations.Therefore,environmental regulations at this stage may have a positive impact on export.In addition,the regression results after removing some samples showed the same trend as the benchmark model,which enhanced the fullness and robustness of the empirical analysis.Therefore,on the basis of theoretical and empirical research results,this paper suggests that the government should pay attention to the forced regulation of export by environmental regulations,promote enterprise R & D innovation and industrial structure upgrade;enrich environmental governance measures,improve the environmental tax system;implement environmental certification System,strengthen the construction of green trade system,and better assume the intergenerational responsibility for protecting the environment.