The Influence Research Of Environmental Regulation On Urban Green Productivity

The realization of industrialization has promoted economic development,but also caused excessive consumption of resources and increased environmental pollution.In order to protect the environment while promoting the economic growth,the government needs to formulate reasonable environmental policies to improve enterprise green productivity.Reasonably formulated environmental policies can help companies reduce pollution emissions,increase green productivity,and achieve industrial upgrading and transformation.Based on this,the paper will analyze the effects of two different environmental policies on productivity and technological innovation of enterprise,and explore the impact on urban green productivity.This paper expands on the basic model of Qiu(2018)and Acemoglu(2013)at the enterprise level to establish the micro-foundation of the impact of environmental policies on urban green productivity.The theoretical model constructs command-and-control(CAC)environmental regulations and market-based-incentive(MBI)environmental regulations agency variables respectively.By seeking the first-order conditions of enterprise cost minimization and profit maximization,the paper obtains the impact of environmental policies on enterprise production costs,innovation investment and urban green productivity,and verify the "Porter Hypothesis" under strong and weak conditions.The model deduces that MBI environmental policy increases the production cost of enterprises and encourages enterprises to make innovation investments,but the comprehensive impact on green productivity depends on the combined effect of cost effect and innovation effect.The CAC environmental policy increases the total production cost of enterprises and squeeze out the investment for the innovation and production,which can restrain innovation investment and green productivity.Based on the data of 103 cities,dating from 2005 to 2015,this paper constructs a difference-in-difference(DID)method and a fixed effect model to analyze the impact of two environmental policies on cities with different pollutant emission intensity.The empirical results show that: firstly,the CAC environmental policy will significantly reduce the green productivity of cities.Under the constraint of CAC environmental policy,the green productivity of low-pollution cities decreased more significantly,while the green productivity of high-pollution cities doesn’t change significantly.Secondly,the relationship between urban green productivity and the intensity of MBI environmental policy is inverted "U" shape.MBI environmental policy has more significant incentive effect on medium pollution cities,but less impact on high-pollution cities and medium-pollution cities.Thirdly,the results of group regressions show that the inflection point of the experimental group is more backward,which shows that the incentive effect of the two policies is better than that of the MBI policies alone.Finally,it is found that the CAC environmental policy has a greater inhibitory effect on the innovation investment of medium-and high-pollution cities through the mechanism test,while the MBI environmental policy has a significant role in promoting the innovation investment of medium pollution cities,but not in high-pollution and low-pollution cities.Based on this,this paper proposes that the government needs to select the appropriate environmental policy according to the characteristics of the city.For high-pollution cities,the CAC policy can force low green productivity companies to upgrade and transform and increase overall green productivity.For low-pollution and medium-pollution cities,the MBI policy can encourage enterprises to increase investment in innovation and realize a benign investment cycle in the market.This paper provides theoretical basis for the government to make reasonable environmental policies,which is conducive to the well designed policies to the verified cities according to the urban situation,to ensure that pollution emissions are within the range of environmental carrying capacity,and to encourage urban investment and innovation.