The Impact Of Environmental Regulation On Green Total Factor Productivity In Manufacturing Industry

With steady progress in industrialization and urbanization,China has become the world’s second largest economy.At the same time of economic prosperity and development,we should not ignore human damage to the ecological environment.Various phenomena,such as deforestation,pollution of rivers and piles of industrial waste,reflect the pain points of economic development.During the 14 th Five-Year Plan period,it is all the more important for ecological construction to keep pace with the pace of modernization,for economic development to coexist with ecological civilization,and for man to go hand in hand with nature.Nowadays,the situation of resources and environment is not optimistic,and we need to make more efforts.How to maintain and improve the ecological environment in the trend of economic development,so as to let the two go together has become a realistic challenge to be explored constantly.Economic growth cannot be separated from technological progress,and technological progress can better serve the actual needs.In the context of advocating ecological civilization,the green development of the industry is very important.Improving the green total factor productivity is also a great embodiment of environmental protection,and makes contribution to the green development of the industry.Focusing on the micro level of manufacturing enterprises,this paper makes corresponding empirical exploration on the impact of environmental regulations on green total factor productivity,whether government subsidies can play a regulating role,and how to play the regulating mechanism.First,the literature,concepts and theories related to environmental regulation and government subsidies are sorted out,and then the status quo analysis of these two policies and the development of manufacturing industry is listed.Secondly,the mechanism of environmental regulation on green total factor productivity is elaborated,and then government subsidies are included in the research framework to further analyze the influence mechanism and put forward the corresponding research hypothesis.Then,the internal panel data and external output indicators of A-share manufacturing listed enterprises from 2010 to 2019 were selected to calculate and analyze green total factor productivity.Finally,with the help of fixed effect and threshold effect model,this paper empirically analyzes the influence of environmental regulation and government subsidies on green total factor productivity,and verifies the hypothesis.The conclusions are as follows: Environmental regulations inhibit the improvement of green total factor productivity in manufacturing,and the threshold effect test shows that there is a nonlinear inverted U-shaped relationship between the two.The impact of government subsidies on the green total factor productivity of enterprises is mainly manifested in the crowding-out effect,that is,the government subsidy policy at the present stage is not in the best range in promoting the development of specific industries.However,under the environmental regulation policy,government subsidies will positively adjust the green total factor productivity of enterprises.The action path is to promote green technology innovation by increasing R&D investment.In addition,from the perspective of firm heterogeneity,environmental regulations have different impacts on green total factor productivity of different firm properties,and have a better effect on the improvement of green total factor productivity of non-state-owned enterprises.From the perspective of industry heterogeneity,the combined effect of environmental regulation and government subsidies can significantly improve the green total factor productivity level of heavy polluting enterprises,reduce pollution emission behavior,and promote the green transformation development of enterprises,while the regulatory effect of government subsidies on the green total factor productivity level of non-heavy polluting enterprises is not obvious.From the perspective of different regions,there is regional heterogeneity in the regulatory effect of government subsidies.Through empirical test,the positive regulatory effect of government subsidies in the central region is the most obvious,while the promoting effect of government subsidies on the green total factor productivity of manufacturing industry in the eastern and western regions is not obvious.Therefore,the implementation of subsidy policies should fully consider the heterogeneity of enterprises in different regions,different types and different pollution levels,adjust to local conditions,set reasonable environmental regulation levels,encourage enterprises to improve the utilization rate of production resources,and promote green technology innovation.According to the conclusion,to provide possible reference for the realization of environmental protection and the common development of manufacturing economy,there are the following countermeasures and suggestions.First,we should set up scientific environmental regulation intensity and formulate comprehensive subsidy screening standards.Second,we should coordinate the effect of policy implementation and pay attention to the complementarity of policies.Third,strengthen regional exchanges and cooperation and promote market-oriented development.Fourth,we need to raise the awareness of enterprises in R&D and strengthen their capacity for green technology innovation.To sum up,in order to achieve the dual development of economy and ecology,the government and enterprises need to form a joint force,the government should further do appropriate intervention,enterprises themselves should also strengthen the emphasis on green technology innovation,to improve their competitiveness in the industry,and jointly embark on the road of green and highquality development.