Abstract
This paper classifies environmental regulation into two types and constructs a theoretical framework to explore the influences of fee-based environmental regulation and invest-based environmental regulation on environmental pollution. It then establishes some dynamic spatial autoregressive nonlinear econometric models to test the theoretical hypothesis based on 30-area panel data from 2004 to 2016. The results illustrate that inverted “U” shape curve relationship exists between fee-based environmental regulation and environmental pollution, while a “U” shape curve relationship between invest-based environmental regulation and environmental pollution exists. In addition, the findings suggest that improving the proportion of secondary industry can directly promote the environmental quality while effectively control of foreign direct investment and fiscal decentralization is also indispensable. Thus, the government should make targeted research about the optimal intensity of fee-based environmental regulation and invest-based environmental regulation and make targeted enterprise policy for the environmental pollution reduce, which contains promoting the energy revolution and strengthening the depth and strength of opening-up step by step.
Highlights
The economic growth in the process of industrialization is accompanied by the rapid consumption of production factors and the massive emission of pollutants, which means the environmental quality is inevitably eroded by pollutants even if considering the natural purification and recycling effect of the ecological environment
A lot of researches is conducted on the specific impact of environmental regulation on environmental pollution or productivity that are conducted by scholars and related institutions (Christainsen and Haveman, 1981; Porter, 1991; Porter and van der Linde, 1995; Jaffe and Palmer, 1997; Alpay et al, 2002; Gray and Shadbegian, 2003; Telle and Larsson, 2007; Frondel et al, 2007; Lanoie et al, 2011; Iraldo et al, 2011; Zhang et al, 2011; Greenstone et al, 2012; Amber et al, 2013; Rassier and Earnhart, 2015; Wang and Shen, 2016; Li and Wu, 2017; Galinato and Chouinard, 2018) [1,2,3,4,5,6,7,8,9,10,11,12,13,14,15,16,17]
In order to control the impact of other factors on environmental pollution, referring to research of some scholars (Wang et al, 2018; Que et al, 2018; Sapkota and Bastola, 2017; Sghari and Hammami, 2016), industrial structure, fiscal decentralization, foreign direct investment, and local economic development are included in the measurement model as control variables [36,37,38,39]
Summary
The economic growth in the process of industrialization is accompanied by the rapid consumption of production factors and the massive emission of pollutants, which means the environmental quality is inevitably eroded by pollutants even if considering the natural purification and recycling effect of the ecological environment. The main reason is industrial development without giving priority to environmental governance. In order to achieve a win-win posture of economic development and environmental protection, the government has implemented environmental regulations on polluting enterprises. One is the classification and definition of environmental regulation and the other is research method that contains econometric model, game model, and regression measurement. Is there an inverted “U” relationship between fee-based environmental regulation and environmental pollution? Is there a “U” shape curve characteristic between invest-based environmental regulation and environmental pollution?
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