Research On The Impact Of Environmental Regulations On Corporate Green Investment

Achieving shared development of ecological balance and economic growth is essential for the long-term security of mankind.However,since the 1970 s,our economy has taken a great leap forward and rapidly climbed onto the world’s big economic stage,and this trend of brutal economic growth has had a serious negative impact on our ecological balance and human living environment.As a result,the government began to introduce,one by one,a large number of environmental protection regulations and measures,and our citizens also watched through various network channels and through letters and offline visits.And businesses,as the culprits of pollution emissions,should take the initiative to act for environmental protection and actively fulfil their social responsibility,of which corporate green investment is one of the most effective manifestations.Therefore,this paper studies the relationship between environmental regulation and enterprise green investment,which can effectively measure the effect of environmental regulation,and if environmental regulation can be properly utilized,it can make the role of environmental regulation achieve a win-win situation between pollution control and enterprise benefits,and then promote the sustainable development of China’s economy and the construction of green civilization,which is important for coordinating the relationship between environmental environment and economic development in China.This is of great importance for harmonizing the relationship between the ecological environment and economic development in China.In this context,this paper uses the data of China’s major polluters from 2010 to2018 to study the relationship between environmental regulations and enterprises’ environmental investment,and mainly classifies environmental regulations into the following three categories: market incentive type refers to the allocation of limited resources by the invisible hand of the market,such as the government to increase investment in environmental protection and investment in pollution control facilities are effective market incentive type environmental regulation instruments.Command and control refers to direct government promulgation of various environmental regulations to monitor the production behaviour of enterprises.The informal type is the monitoring of pollution emissions by the public and organisations.First,this paper composes and analyzes the existing literature on environmental regulation and research results related to corporate green investment,then defines the research variables proposed in this paper and describes the mechanism of action and research hypothesis between environmental regulation and corporate green investment in this paper,second,analyzes the current situation of environmental regulation and corporate green investment in China,and finally,establishes an empirical model to analyze the impact of environmental regulation on corporate green investment.And targeted policy recommendations from the three perspectives of the government,the enterprise and the public.government should further improve the implementation of environmental regulation tools,enterprises should take the initiative to increase the scale of green investment,and the public should strengthen the awareness of environmental protection and focus on green consumption.The results of this paper show that when market incentive environmental regulation is chosen as the threshold variable,there is only one threshold effect between it and corporate green investment,and the relationship between market incentive environmental regulation and corporate green investment is first almost no effect and then significantly positive,in addition,when firm size is chosen as the threshold variable,the relationship between market incentive environmental regulation and corporate green investment is first positive and then becomes no effect.In addition,when firm size is chosen as the threshold variable,the relationship between market incentive environmental regulation and green investment is positively correlated and then becomes almost no effect;when informal environmental regulation is chosen as the threshold variable,the relationship between command-and-control environmental regulation and green investment is positively correlated and then becomes almost no effect;when informal environmental regulation is studied,it is found that there is no threshold effect between the two,but only a There is only a linear relationship,when the strength of informal environmental regulation becomes greater,firms’ environmental investments will also increase accordingly.The paper contains 7 figures,16 tables and 122 references.