Environmental Regulation,financing Constraints And Environmental Expenditure

After years of rapid economic growth in China,environmental and resource issues are becoming increasingly prominent.Economic growth at the expense of high environmental costs and resource consumption has become unsustainable.As the government attaches greater importance to environment,relevant laws and regulations have been promulgated to strengthen environmental regulation.As major consumers of energy and major producers of environmental problems,enterprises are bound to increase environmental protection expenditures to meet environmental regulations.The problem of financing constraints has a great impact on the investment behavior of enterprises.So,are there any differences in corporate environmental protection expenditures under different levels of environmental regulation?Will financing constraints promote or reduce the degree of impact of environmental regulations on corporate environmental protection expenditures?These issues are worth further investigation.Based on this background,this paper explores the influence relationship between government environmental regulations and corporate environmental protection expenditures under the regulation of financing constraints.Based on the review of the existing research results,this paper first clarifies the impact mechanism and path of environmental regulations and environmental protection expenditures of enterprises.Then take the listed companies that disclosed the amount of environmental protection expenditure in 2013-2018 as a sample,then use empirical analysis to quantitativelycompare the differences in the effects of different types of environmental regulations on corporate environmental protection expenditures.Finally,the financing constraints on the regulation of the relationship between environmental regulations and corporate environmental protection expenditures was empirically tested.The research results show that: First,the scale of environmental protection expenditures of Chinese companies is generally insufficient.Second,there is a significant inverted "U" relationship between command-control and market-incentive environmental regulations and environmental protection expenditures.Among the three environmental regulation tools,command-control and market-incentive environmental regulation tools can actively promote enterprises to increase investment in environmental protection,while public-participation environmental regulation is less effective.Third,China Enterprises generally face financing constraints,which will negatively regulate the relationship between command-controlled environmental regulations and market-inspired environmental regulations and the environmental protection expenditures.Fourth,the impact of financing constraints on the relationship between environmental regulations and environmental expenditures of non-state-owned enterprises is bigger than state-owned enterprises.The impact of financing constraints on the relationship between environmental regulations and environmental protection expenditure of heavily polluting enterprises is greater than non-heavily polluting enterprises.Finally,based on the research conclusions,this article gives corresponding policy recommendations,and provides a strong basis for government governance of the environment and promotion of environmental protection expenditure by enterprises.