Research On The Influence Of Environmental Regulation On Manufacturing Innovation

Since the implementation of the reform and opening-up policy in 1978,China's economy has developed rapidly.So far,China's economic development has made remarkable achievements.However,compared with the western developed countries,China's economic growth has always been realized in high input,high consumption and high emission,which has caused serious damage to the ecological environment.The extensive development mode of economy and the increasingly serious environmental problems have become the serious bottleneck restricting economic growth and social sustainable development.The economic development model at the cost of damaging the ecological environment makes the environmental problems in China more and more serious,which has seriously restricted the development of manufacturing industry.At the same time,China's manufacturing industry has been at the low end of the global value chain for a long time,and it is urgent to enhance its international competitiveness through structural adjustment.Although the damage of China's economic development to ecology is not as serious as before,there are still a lot of contradictions between ecological environment and economic development that need to be solved.How to ensure the balance between environmental governance and manufacturing development,as well as the win-win situation between them,has become an urgent problem to explore and solve.In this case,the study of the impact of environmental regulation on manufacturing innovation will help to provide appropriate policy reference for national and local governments.In this paper,total factor productivity(TFP)is used as a measure of manufacturing innovation.First of all,in the process of theoretical analysis,this paperstudies the impact of environmental regulations on manufacturing innovation through the impact mechanism.Therefore,this paper uses empirical analysis to verify the positive and negative influence coefficient.Since the law on the prevention and control of water pollution was revised and improved in 2008,the revision was regarded as a natural experiment according to relevant theories.In this paper,the double difference(did)model is used to establish the benchmark model,and the data from 2003 to 2014 of China's A-share listed manufacturing enterprises are selected for empirical analysis.From the empirical results,it is not difficult to see that environmental regulation has a significant impact on TFP growth,and the impact coefficient is a positive number.Therefore,the environmental supervision policies and regulations implemented in China can promote the innovation and development of enterprises.On the basis of this analysis,a dynamic analysis is carried out,and it is found that the implementation of the environmental regulations has a lag period of about one year.However,its positive impact has weakened year by year.Secondly,the overall research sample is divided into two sub samples,which are the "strong control" area of environmental regulation and the "weak control" area of environmental regulation,based on which the group regression is carried out.The results show that the impact of environmental regulations and policies on manufacturing enterprise innovation is greater in the "strong control" area.The results show that only when local governments strictly implement environmental laws and regulations in accordance with the standards,can they give full play to the role of promoting manufacturing innovation.On the contrary,if the enterprises can't well implement the environmental laws and regulations,the polluting enterprises will not be able to better improve their innovation ability,and the innovation situation of the manufacturing industry will not be improved.Then,in order to study the impact of environmental regulation on innovation activities of manufacturing enterprises from the perspective of "cost crowding" and "innovation compensation",this paper uses the double difference model to analyze.After the implementation of the policy,the high cost urges the enterprises to innovate,which shows the innovative results within one or two years.Finally,based on the conclusion of the empirical test,this paper puts forward relevant policy recommendations: improve the environmental regulation policy,improve the environmental regulation system;promote the rationalization of policyimplementation,promote the improvement of innovation ability of enterprises,etc.