The impact of environmental regulation on green total factor productivity

Abstract

As environmental problems become more serious, China has introduced strict environmental regulation policies. As a win-win way to improve environmental quality and promote economic growth, green technological progress is of great significance to achieve high-quality economic development. However, what effect does China's environmental regulation play on the progress of green technology. In the era of data information, it is beneficial to explore the impact of environmental regulation policies on the progress of green technology by fully mining data. Therefore, this paper used the PVAR model, DEA model, Pedroni's cointegration test, VEC model, and impulse response function method to study the impact of environmental regulation on green total factor productivity in China. The results show that the positive and negative effects of ER on GTFP are intertwined, and there is a long-term co-integration relationship and a short-term fluctuation effect. Overall, it shows a positive promoting effect. In the short run, it has a negative inhibiting effect. Therefore, when implementing strict environmental regulation policies, it is necessary to coordinate the sustainable economic development.