Research On The Impact Of Air Pollution On The Total Factor Productivity Of Chinese Industrial Enterprise

With the degradation of environment and the constraints of resources,the UN Member States adopted the 2030 Agenda for Sustainable Development(SDGs)with 17 Sustainable Development Goals.Transforming from improving factor productivity to total factor productivity(TFP)is virtual for sustainable development.Although China has gradually introduced strict environmental policies to control air pollution in recent years,air pollution is detrimental to the achievement of SDGs.This dissertation attempts to explore the internal relationship between air pollution and total factor productivity of enterprises both theoretical logic and empirical evidence.This dissertation not only provides new practical ideas for sustainable development of enterprises,but also provides new policy inspiration for the government to promote environmental governance.This dissertation firstly summarizes relevant researches and combined externality theory,environmental economic theory and human capital theory to build a theoretical framework for the impact of air pollution on total factor productivity of enterprises.By matching the unbalanced panel data of over 2.9 million industrial enterprises in Chinese Industrial Enterprise Database from 2000 to 2013 with county-level air pollution data,this dissertation adopts a regression discontinuity(RD)design to explore the internal relationship between air pollution and TFP.Finally,this dissertation analyzes the moderating roles of environmental governance intensity,informatization level and government subsidies in this process and the heterogeneity effect of different enterprise ownership,factor intensity and location.Finally,the dissertation examines the mechanism of air pollution.effect.The results show that air pollution significantly reduces firm’s total factor productivity.Every 10μg/m~3 increase in PM2.5 results in a 0.21% decrease in firm’s total factor productivity.The effect is heterogeneous due to ownership,factor intensity,location and environmental enforcement intensity.Non-state-owned enterprises and labor-intensive enterprises are more sensitive to air pollution.Larger scale and higher environmental enforcement intensity cities where enterprises are located are easier to mitigate the effects of air pollution.Environmental governance intensity and informatization level weaken the negative impact of air pollution on firm’s total factor productivity.Government subsidy have a significant positive moderating effect on the process.Further analysis shows that the moderating effect is heterogeneous due to ownership,factor intensity and location.Air pollution suppresses total factor productivity by increasing inventory,reducing factor productivity and increasing financing constraints.