Research On The Relationship Between Heterogeneous Environmental Regulation, Green Innovation And Enterprise Total Factor Productivity

At present,China’s economy is gradually transforming into highquality development,which requires us to take into account economic and environmental benefits at the same time,and environmental regulation has gradually become the key means to solve this problem.Environmental regulation can make up for the shortcomings of the traditional market means in environmental governance,and can affect the level of green innovation and total factor productivity by inducing the "Porter effect".This paper takes A-share listed manufacturing companies in Shanghai and Shenzhen stock exchanges from 2009 to 2017 as research samples.Based on the theoretical framework of heterogeneous environmental regulation,green innovation,and enterprise total factor productivity,this paper constructs a dynamic panel model,and empirically tests the linear and nonlinear relationship between heterogeneous environmental regulation and green innovation,and enterprise total factor productivity by using the two-step System GMM estimation method,And further explore the impact of the interaction between heterogeneous environmental regulation and green innovation on the enterprises’ total factor productivity,and verify whether the weak and strong "Porter Hypothesis" is established,which is of great significance to improve the total factor productivity and green competitiveness of enterprises,and realize the sustainable growth of China’s economy.The results show that:(1)both command-control environmental regulation and public participation environmental regulation have a positive role in promoting green innovation,and there is no nonlinear relationship,while market-incentive environmental regulation has a negative inhibitory effect on green innovation,but it is not significant;(2)There is a U-shaped relationship between command-control environmental regulation and public participation environmental regulation and enterprises total factor productivity,while the nonlinear impact of market-incentive environmental regulation on enterprises total factor productivity is not significant;(3)Command-control environmental regulation,market-incentive environmental regulation,and public participation environmental regulation have significant interactive effects with green innovation,that is,they can improve enterprises’ total factor productivity by improving enterprises’ green innovation level.Based on the above research conclusions,this paper puts forward relevant suggestions from the three levels of government,enterprises,and the public.At the government level:(1)scientific design to ensure that the regulation intensity is in a reasonable range;(2)Improve the environmental regulation system according to the situation of enterprises;(3)Learn from each other’s strengths and complement each other’s weaknesses,and comprehensively implement heterogeneous environmental regulation tools;(4)Broaden ideas and improve the incentive mechanism for green innovation of enterprises.At the enterprise level:(1)take appropriate measures to actively respond to different environmental regulation policies;(2)Change ideas and take the initiative to carry out green innovation.At the public level: strengthen the supervision of news media and enhance public awareness of environmental protection.