An Empirical Study On The Impact Of Environmental Competitiveness Of China’s Automotive Industry

The main theme of today’s world development is "addressing climate change and realizing low-carbon development",and China has shown our determination and responsibility for green development in the world,and will continue to contribute Chinese solutions and Chinese wisdom to the world’s sustainable development.Since the automobile industry took root in China,it has made rapid development,and after decades of efforts,it has now become an extremely important pillar industry in China.However,the automobile industry is an industry that relies heavily on fossil energy,which can cause continuous damage to China’s ecological environment.In the current context of China’s gradually improving environmental regulation system and stricter standards,it is necessary to study what and how environmental regulation affects the international competitiveness of China’s automobile industry,and whether there are differences in this effect for regions with different levels of development.Based on this,this paper focuses on the impact of environmental regulation on the international competitiveness of China’s automobile industry.Then,based on Porter’s hypothesis,the paper constructs a Gounod’s double oligarchy theory model to derive the effect of environmental regulation on the international competitiveness of the industry.The relevant panel data of 30 provincial administrative units from 2010 to 2019 are selected for empirical testing,and a two-way fixed-effects model is used for benchmark regression analysis.The regression results show that there is a significant positive promotion effect of environmental regulation on the international competitiveness of China’s automobile industry,i.e.,the greater the intensity of environmental regulation,the stronger the international competitiveness of China’s automobile industry.In addition,this paper also analyzes the regional heterogeneity by dividing the provincial data into eastern,central and western regions according to the level of economic development,and explores the differences in the effect of environmental regulation on the international competitiveness of automobile industry in different economic regions.The results show that environmental regulation has a significant positive effect on the international competitiveness of the automobile industry in the eastern and central regions of China,while the western region shows a non-significant effect.Finally,the findings of the full paper are summarized and specific suggestions are made on how China’s auto industry can improve its international competitiveness in the context of environmental regulation.