Environmental Regulation And Manufacturing Upgrade

At the same time as China's rapid development,environmental problems have become serious.The growing population has made the resources scarcer.The development of the industry,especially the manufacturing industry,still has some gaps with developed countries.Environmental regulation is a "tangible hand" that can effectively govern the environment and improve Environmental conditions and a large number of studies have also confirmed that environmental regulation can ultimately affect the upgrading of manufacturing through innovation.Therefore,the impact of innovation on the relationship between environmental regulation and manufacturing upgrade has become the key to understanding the win-win situation of the environment and upgrade of manufacturing.Based on the existing research,this paper makes targeted improvements and supplements.First,based on relevant data,we analyze the reality of China's environment and manufacturing development at this stage.After analyzing the mechanism of action,a qualitative conclusion is drawn that environmental regulation can be transmitted to the upgrading of manufacturing industries through innovation,FDI,capital market development and infrastructure construction.With the help of the Baumol economic growth model,the core theme of the technological innovation transmission path is to improve and standardize the conclusions,and use them as theoretical hypotheses.Then the empirical test was performed on the mechanism of action.Micro data of A-share listed companies and NEEQ listed companies from 2009 to 2018 and macro data of environmental yearbooks and regional economic yearbooks of various provinces were selected.The test results show that the mediation effect of technological innovation in the relationship between environmental regulation and manufacturing upgrade is established,and command control Environmental regulation tools and technological innovation have a "J-type" relationship.Because of the scale effect,the stronger the command-controlled environmental regulation,the more incentives the company has for innovation.The market-inspired environmental regulation tools and technological innovation is the "U-shape",the Porter hypothesis established,and environmental regulations can force enterprises to innovate.Then use the threshold effect model to further explore the impact of heterogeneity of environmental regulations on the upgrading of manufacturing in the context of technological innovation.Environmental regulation is threshold variable,technological innovation is the core explanatory variable,and manufacturing transformation is the core explained variable.It was found that the two types of environmental regulation tools are two-threshold models.For command-controlled environmental regulation tools,under the three interval regulations,environmental regulation can ultimately promote the upgrading of manufacturing through technological innovation.The improvement of environmental efficiency brought by innovation may crowd out a increase in production efficiency and it is easier for companies to meet environmental standards at low intensity.At high intensity,only a group of the highest quality companies will "survive" in the market.The driving effect of this two zones is stronger than that of the second zone.For market-inspired environmental regulation tools,under the first and third ranges of intensity,environmental regulation can ultimately promote the upgrading of manufacturing industries through technological innovation.In the second zone,because regulation brings more burden,there is no enough market mechanism for the enterprise to absorb the burden.Blind innovation will hinder the development of enterprises.After dividing the samples into regions according to the environmental regulatory intensity thresholds,the samples were divided into 9 groups according to the "excellentsub-optimal-non-excellent" of the interval,and targeted improvement suggestions were given.Finally,according to the conclusions of the study,policy recommendations were proposed to enrich the market-inspired environmental regulation,scientifically implement the command-and-control environmental regulation,correctly guide the flow of funds to the Environment-friendly manufacturing,and implement environmental regulation based on local conditions.