An Empirical Study On The Impact Of Environmental Regulations On Shandong's Industrial Total Factor Productivity

In the report of the Nineteenth National Congress of the CPC,it was clearly pointed out that China's economy has begun to turn to the stage of high-quality economic development.Under the guidance of the new goal of "building a strong,prosperous,democratic,civilized,harmonious and beautiful socialist modernization power",environmental issues have become more and more important,which is related to whether the goal of "beauty" can be achieved.Shandong Province,as China's largest economy and population province,is facing the following problems in the process of achieving this goal: on the one hand,environmental problems are becoming more and more serious,pollution control,environmental protection and economic green sustainable development have become an important direction of development.On the other hand,the relationship between environmental regulation and economic development has been widely concerned.Does environmental regulation seriously hinder the economic development of the region? If not,what is the impact of environmental regulation on TFP? In this context,this paper takes industry in 17 cities of Shandong Province as the research object,combs the literature of predecessors,explores the impact of environmental regulation on total factor productivity and decomposition efficiency of industry,and provides reference for Shandong Province in economic transformation and formulation of environmental regulation policies.In order to explore the impact of environmental regulation on industrial total factor productivity in Shandong Province,this paper first combs the relevant literature on the impact of environmental regulation on total factor productivity,and correctly grasps the trend of theoretical research.Secondly,based on the analysis of industrial development and environmental regulation in Shandong Province,the paper collects relevant industrial data of each city,calculates the total factor productivity of 17 cities in Shandong Province from 2003 to 2016 with DEA-Malmquist index,and divides the total factor productivity of industry into technological progress,pure technical efficiency and scale efficiency;thirdly,carries out empirical research on environmental regulation,total factor productivity and its decomposition efficiency;finally,on the basis of accounting productivity and empirical research,policy recommendations are provided to realize the "win-win" situation of regional industrial total factor productivity growth and environmental protection.The main conclusions are as follows:(1)The average value of industrial TFP in Shandong Province during 2003-2016 is greater than 1,and the growth rate is 9.5%.This shows that industrial TFP in Shandong Province is efficient.(2)Generally speaking,there is a non-linear inverted U-shaped relationship between environmental regulation and industrial TFP in Shandong Province.When the intensity of environmental regulation is reasonable and appropriate,it has a positive impact on the growth of industrial TFP,and when the intensity of environmental regulation crosses the inflection point,it will have a negative impact on industrial TFP.There is also a non-linear inverted U-shaped relationship between environmental regulation and technological progress,and environmental regulation has a negative effect on technological efficiency.(3)Moderate concentration of enterprise scale is conducive to rational allocation of resources,saving input factors and promoting the development of productivity.Considering that the city is the specific executor of the national environmental protection policy and has the most direct impact on the behavior of enterprises in all industries in the city,it will be more specific to examine the relationship between environmental regulation and total factor productivity at the urban level.Restricted by the availability of micro-data,there is no subdivision of industry,and there is a certain substitution in the selection of indicators.In the future research,subdivision of industry and optimization of the selection of indicators will make the research more in-depth.