Research On The Impact Of Environmental Regulation On Industrial Structure Upgrading

The change of industrial structure is affected and restricted by various factors.Environmental regulation has always been regarded as an effective means to adjust China’s industrial structure and transform China’s economic development mode.China’s current environmental pollution problem has not found an effective solution,overcapacity,industrial structure,there are still many disharmonious factors,these problems have become the shackles of China’s economic development.Therefore,by analyzing the impact of environmental regulation on the upgrading of industrial structure,this paper hopes to provide theoretical basis and decision-making reference for the government to formulate environmental regulation policies,improve the governance effect of environmental regulation and promote the optimization and upgrading of industrial structure.Based on the data of 30 provinces（excluding Hong Kong,Macao,Taiwan and Tibet based on the availability of data）from 2007 to 2019,this paper mainly measures and analyzes the environmental regulation,uses the relevant data to construct the environmental regulation intensity index system,and calculates the environmental regulation intensity coefficient of each province in China.At the same time,it also constructs the related index system of industrial structure upgrading,obtains the rationalization index of industrial structure of each province in Our country through calculation,and obtains the advanced index of industrial structure of each province in our country through calculation.Based on literature review and related theories,empirical analysis is made.Firstly,static panel model is used for regression analysis to study the impact of environmental regulation policies on industrial structure upgrading.Secondly,it analyzes the mediating effect of environmental regulation on the upgrading of China’s industrial structure through the transmission mechanism of technological innovation,investment demand,consumption demand and FDI.This paper mainly draws the following conclusions :（1）the regression results of static panel show that environmental regulation has a restraining effect on the upgrading of China’s industrial structure,but has an insignificant promoting effect on the rationalization of China’s industrial structure.Among the control variables,the improvement of urbanization level is conducive to promoting the high-level of China’s industrial structure.Not conducive to rationalization of China’s industrial structure.The improvement of government intervention degree and technological innovation level can not only effectively improve the advanced level of China’s industrial structure,but also promote the transformation of China’s industrial structure to the rationalization direction.The level of economic development has no significant effect on the upgrading and rationalization of China’s industrial structure.The level of human capital has no significant promoting effect on the upgrading of China’s industrial structure,but it can significantly promote the adjustment of China’s industrial structure toward the direction of rationalization.Investment demand has a restraining effect on the upgrading of China’s industrial structure,but it can significantly promote the rational development of China’s industrial structure.Consumer demand has no significant restraining effect on the upgrading and rationalization of China’s industrial structure.Foreign direct investment has no significant inhibition effect on the upgrading of industrial structure,and has no significant promotion effect on the rationalization of industrial structure.（2）The results of mediation effect show that the transmission mechanism of technological innovation,investment demand and consumption demand play an indirect role in the process of environmental regulation’s influence on industrial structure upgrading,and produce different indirect effects,while foreign direct investment does not play an intermediary role.Although the direct effect of environmental regulation can inhibit the upgrading of industrial structure,the indirect effect of environmental regulation through the transmission mechanism of technological innovation can promote the improvement of China’s industrial structure,which makes part of the negative effect of the direct effect of environmental regulation can be offset.Meanwhile,in the process of environmental regulation inhibiting industrial structure upgrading,the indirect effect of investment demand also inhibits industrial structure upgrading,thus enhancing the negative impact of environmental regulation on the direct effect of industrial structure upgrading.The direct effect of environmental regulation can inhibit the change of industrial structure towards rationalization,but the indirect effect of consumer demand transmission mechanism can promote the change of industrial structure towards rationalization,which makes part of the negative effect of the direct effect of environmental regulation offset.Finally,this paper puts forward relevant policy suggestions.It includes further improving relevant laws and regulations,strengthening law enforcement of environmental protection,formulating targeted environmental regulation policies,increasing investment in environmental pollution control,encouraging and guiding enterprises to carry out technological innovation,and constantly promoting the construction of new urbanization.