The Study Of Environmental Regulation On Enterprise Environmental Protection Investment

Since the implementation of reform and opening-up policy,China’s economy has developed rapidly.However,economic growth has caused a series of environmental problems,such as air pollution,water pollution in recent years.A series of the deterioration of environment poses a great threat to people’s life and health.In the context of the new era,the protection of the ecological environment not only depends on the unilateral promotion of the government,but also requires the joint efforts of enterprises as the main polluter,as well as the supervision of the media and the public.In the process of industrial production,enterprises will release a large number of chemical harmful substances that cause serious pollution to the atmospheric environment.Enterprises should take responsibility for their own pollution behavior,actively invest in environmental protection funds,optimize the production process,and reduce their pollution emissions.However,some scholars have found that enterprises lack the motivation to invest in environmental protection,and the investment scale of environmental protection is small.In this situation,the government is bound to control the environment pollution of enterprises.Whether enterprises,as the main object of the implementation of the government’s environmental policies,will respond to and actively cooperate with the government’s mandatory environmental policies.At the same time,due to the extensive political connection,the impact of government environmental regulations on enterprises’ environmental investment behavior is more uncertain.This paper focuses on heavily polluting industries,and bases on panel data of listed companies,through the combination of empirical research and normative research,this paper makes an in-depth study on the relationship between environmental regulation and enterprise environmental protection investment,the relationship between political connection and enterprise environmental protection investment,and the impact of political connection on environmental regulation and enterprise environmental protection investment.The following conclusions are drawn: Firstly,environmental regulation can significantly promote enterprises’ investment in environmental protection.Under increasingly strict environmental regulation,enterprises will increase their investment in environmental protection.Secondly,political connection can positively guide enterprises to make environmental protection investment.The scale of environmental protection investment of enterprises who have the political connection is obviously higher than that of enterprises without political connection.Thirdly,political correlation can further strengthen the positive impact of environmental regulation on enterprise environmental protection investment.Finally,in order to guide enterprises to fulfill environmental responsibility and improve the scale of environmental protection investment,this paper put forward policy suggestions for the government and enterprises.From the perspective of the government,it is necessary to build a good coordination and communication mechanism between the government and enterprises,implement flexible and different environmental regulation policies,and avoid the negative impact of "political championship" on local environmental protection work.From the perspective of enterprises,enterprises should actively establish relations with the government within the scope permitted within the law permission,expand financing channels,expand the scale of environmental protection investment,and at the same time,strengthen their own investment in green innovation technology and improve the efficiency of environmental protection investment.Finally,enterprises should enhance their awareness of environmental protection,actively assume environmental responsibility and fulfill the obligation of environmental governance.