Research Article
The Effect of Environmental Regulations on Economic Development and Industrial Structure
@INPROCEEDINGS{10.4108/eai.1-9-2023.2338758, author={Rong Zhang}, title={The Effect of Environmental Regulations on Economic Development and Industrial Structure}, proceedings={Proceedings of the 2nd International Conference on Public Management, Digital Economy and Internet Technology, ICPDI 2023, September 1--3, 2023, Chongqing, China}, publisher={EAI}, proceedings_a={ICPDI}, year={2023}, month={11}, keywords={environmental regulation; industrial transfer; industrial transformation; economic development}, doi={10.4108/eai.1-9-2023.2338758} }- Rong Zhang
Year: 2023
The Effect of Environmental Regulations on Economic Development and Industrial Structure
ICPDI
EAI
DOI: 10.4108/eai.1-9-2023.2338758
Abstract
China's economy has marched onto a new track of development. It is characterized by transforming the extensive development mode of large resource consumption and large pollution emission to the green development mode of resource and environmental protection. This paper, from the perspectives of per capita GDP, unit GDP energy consumption and pollutant emissions, Gini coefficient, economic growth volatility and urban registered unemployment rate, uses the principal component analysis method to build comprehensive economic development indicators. By using China 2000-2018 Provincial Panel Data, it aims to conduct an empirical examination which shows that the quality of economic development is greatly affected by environmental regulations through the transmission mechanism of industrial structure, industrial transfer and new industrial development. Environmental regulations also stimulate technological innovations, substitute traditional industries with new ones, upgrade industrial structure through innovations, and speed up high-quality economic development. Industrial transfer and transformation greatly cut off the cost of the enterprises, which reflects obvious economic effect. Therefore, environmental regulations should become the impetus to the transforming and upgrading of polluting industries, strengthening the constraints of environmental regulations, improving the efficient employment of resources and reducing environmental pollutions,