Research On The Impact Of Factor Price Distortion On Environmental Pollution

China has entered a stage of high-quality development,shifting from pursuing extensive economic growth to seeking intensive economic development.In the past,the extensive economic growth model caused many problems to China’s environmental protection and became the resistance to the sustainable economic development.Although great efforts have been made in environmental protection in our country,the problem of environmental pollution remains urgent.In order to better control the environmental pollution in our country,it is necessary to deeply explore and analyze the causes of environmental pollution.At the same time,factor distortion has long been a difficult problem for optimizing resource allocation in China.The distortion of enterprise elements makes it difficult for enterprises to achieve optimal resource allocation,resulting in low resource utilization efficiency in the production and operation process of enterprises.Enterprise production is an important source of environmental pollution in China,and factor distortion is an important factor restricting enterprise resource allocation.Through sorting out the existing literatures,it is found that few literatures study the interactive relationship between enterprise factor distortion and environmental pollution.How enterprises improve environmental pollution by optimizing resource allocation is an important issue.This paper aims to study the impact of factor price distortion on environmental pollution.The contents are as follows: The first part expounds the significance of the topic.Meanwhile,relevant existing literature is also collected and sorted out.The second part introduces the mechanism of factor price distortion on environmental pollution is analyzed from the angle of technology effect and trade effect.The third part is the present situation analysis of factor price distortion and environmental pollution.The pollution data set of industrial enterprises was obtained from 1998 to2007.Curpulglas production function is used to measure factor distortion at firm level.Then this paper analyzes the present situation of factor price distortion and environmental pollution of Chinese industrial enterprises.The fourth part is the empirical test and analysis of the impact of enterprise factor distortion on environmental pollution.The impact of factor price distortion on environmental pollution is studied by using fixed effect model and least square estimation model of instrumental variables.The results passed the robustness and endogeneity tests.The fifth part is the conclusion and policy suggestion,summarizes the above conclusions and gives policy suggestion.The conclusions are as follows:(1)there is a positive correlation between factor price distortion and environmental pollution in China.In terms of specific values,every1% increase in factor price distortion leads to a 0.016% increase in sulfur dioxide(SO2)emissions.(2)Factor price distortion mainly affects environmental pollution through trade effect and technical effect.(3)The regional empirical results show that the influence of enterprise factor distortion on environmental pollution is more prominent in the eastern region with higher level of economic development.(4)The empirical results of different ownership systems show that the regression results of factor price distortion on environmental pollution in private enterprises,foreign-funded enterprises and other domestic enterprises are significantly positive.however,the impact of factor price distortion on environmental pollution in state-owned enterprises,collective enterprises,Hong Kong,and Macao enterprises is not significant.Finally,according to the conclusion,the corresponding policy suggestions are put forward for the treatment of environmental pollution in our country.