XU Yang    School of Economics

Abstract: Since our country reform and open to the outside world,China's economy hasachieved rapid growth,but the environmental problems behind the growth areincreasingly serious,which not only affects human health,but also restricts theimprovement of the quality of China's economic development.As a public resource,environmental resources have a strong externality,which leads to the phenomenon of"hitchhiking"or the behavior of environmental governance is not active.Therefore,it isdifficult to solve the environmental problems simply by relying on the marketmechanism.At this time,the important role of the government in environmentalgovernance and environmental protection is highlighted.Environmental issues have beenhighly concerned by the party and the government.In the report of the 17th NationalCongress of the Communist Party of China,the construction of ecological civilizationwas included for the first time;the report of the 18th National Congress of theCommunist Party of China pointed out that we should vigorously promote theconstruction of ecological civilization;the Third Plenary Session of the 18th CentralCommittee of the Communist Party of China proposed to protect the environment withsystems;the 19th National Congress of the Communist Party of China emphasized thatwe should adhere to the principle of saving,protecting and restoring priority,and build aspatial pattern of protecting the environment and saving resources.At the same time,environmental issues are also highlighted in the government work report.In 2015'sgovernment work report,environmental issues became an important starting point forpromoting people's livelihood improvement;in 2016's government work report,itstressed that we should strengthen environmental governance and promote greendevelopment to make new breakthroughs;in 2017's government work report,it proposedthat we should strengthen environmental protection and governance,fight blue skydefense war and strengthen water and soil pollution control.It can be seen that pollutioncontrol,environmental protection and quality improvement have become an importantpart of China's high-quality economic development.As an effective tool for thegovernment to control the environment,the purpose of environmental regulation is to and who controls",to standardize and restrict the environmental behavior of eacheconomic subject,so as to ensure the sustainable use of environmental resources.This isan important point to effectively solve environmental problems,improve the quality ofeconomic development,and realize the"win-win"of environmental protection andeconomic development.Based on this background,how to evaluate the current level of environmentalregulation and the quality of economic development objectively and accurately,and howto clarify and test the impact of environmental regulation on the quality of economicdevelopment will become an important starting point to achieve high-quality economicdevelopment in China.Therefore,this paper focuses on the impact of environmentalregulation on the quality of economic development.Explain the internal mechanism ofenvironmental regulation affecting the quality of economic development,grasp thecurrent situation,change trend and dynamic evolution characteristics of environmentalregulation and economic development quality at this stage through measurement andempirical observation,test the direct effect,spillover effect and transmission effect ofenvironmental regulation on the quality of economic development,and propose somesuggestions to improve environmental regulation and promote the quality of economicdevelopment.The first chapter is the introduction.First of all,through the introduction of theresearch background and significance to explain that in the process of improving thequality of economic development,the implementation of environmental regulations isessential.Secondly,through the elaboration of research ideas and methods,main contentsand technical routes,to clarify the overall research framework and methods of this paper.Finally,it summarizes the innovation and shortcomings of this paper.The second chapter is literature review.One is the literature review ofenvironmental regulation,including the selection of environmental regulation tools,thecalculation of environmental regulation intensity,and the effect of environmentalregulation.The second is the literature review of the quality of economic development,including the connotation of the quality of economic development,the construction of thequality index system of economic development,and the selection of the measurementmethods of the quality of economic development.The third is the literature review of the relationship between environmental regulation and economic development quality,including environmental regulation and economic development,environmentalregulation and technological innovation,environmental regulation and local governmentbehavior,environmental regulation and foreign direct investment,environmentalregulation and industrial structure,environmental regulation and employment.Fourth,literature review,in view of the shortcomings of the existing research,summarizes andexplains the necessity of the research.The third chapter is the internal mechanism analysis of the impact of environmentalregulation on the quality of economic development.The first is to analyze the directeffect of environmental regulation on the quality of economic development from themicro,meso and macro perspectives.From the micro perspective,it explains theenterprise's entry transfer,scale distribution,business performance,investmentpreference and residents'health expenditure,well-being and income distribution,fromthe medium perspective,it explains the industry transfer,upgrading,regionalenvironmental quality and social demand,and from the macro perspective,it explains thenational economy as a whole.Second,from the perspective of the interaction ofenvironmental regulation strategies,this paper analyzes the spillover effect ofintergovernmental environmental regulation and its impact on the quality of economicdevelopment.The third is to analyze the transmission effect of environmental regulationon the quality of economic development from five aspects:technological innovation,local government competition,foreign direct investment,industrial structure adjustmentand employment.The fourth chapter is the measurement and experience observation of environmentalregulation and economic development quality.The first is the measurement ofenvironmental regulation and economic development quality,including the measurementof environmental regulation from the perspective of government and enterprises,and themeasurement of economic development quality from the five development concepts.Thesecond is the empirical observation of environmental regulation and economicdevelopment quality,including the change trend,growth rate change and evolutioncharacteristics of environmental regulation,the change trend,growth rate change andevolution characteristics of economic development quality,and the empirical observation of the fitting of environmental regulation and economic development quality.The fifth chapter is the empirical analysis of the impact of environmental regulationon the quality of economic development.One is to use panel data from 30 provinces in2006-2017 to test the direct effect of environmental regulation on the quality of economicdevelopment from benchmark estimation,robustness and heterogeneity by building adynamic panel model.Secondly,the spatial factors are included in the model,and thespatial spillover effects of environmental regulation on the quality of economicdevelopment are discussed by constructing the spatial Doberman model,includingbenchmark estimation,robustness,spatial effect decomposition and heterogeneity.Thethird is to test the transmission effect of environmental regulation on the quality ofeconomic development from the perspective of benchmark estimation and robustness.The sixth chapter is the conclusion and policy recommendations.The innovations of this paper are as follows:First,it explains the mechanism of the impact of environmental regulation on thequality of economic development from three aspects:direct effect,spillover effect andconduction effect.Among them,from the three levels of micro,medium and macro,toexplore the direct effect of environmental regulation on the quality of economicdevelopment;to break through the static traditional analysis framework,to analyze thespillover effect of environmental regulation on the quality of economic developmentfrom the perspective of the interaction of environmental regulation strategies;to analyzethe impact of environmental regulation on the quality of economic development in-depthfrom the factors affecting the quality of economic development Specific mechanism ofaction,etc.Second,in the five dimensions of the new development concept,20 indicators,suchas R&D investment intensity,urban-rural residents'income ratio,regional energyconsumption/GDP,education fund/total population,are selected to build the qualityindicator system of economic development,so as to make the indicator system morecomprehensive and perfect.At the same time,in the construction method,we breakthrough the traditional measurement methods of factor analysis,principal componentanalysis and entropy,and adopt the standard European distance method to construct thequality indicators of China's economic development from multiple dimensions,which enriches the quality measurement indicators of economic development.Thirdly,the direct effect,spillover effect and transmission effect of environmentalregulation on the quality of economic development are examined by using the differentialmodel.Among them,the dynamic panel model is constructed to test the direct effect ofenvironmental regulation on the quality of economic development by using the SystemGMM method;the spatial Dubin model is constructed to test the spatial spillover effectof environmental regulation on the quality of economic development;the intermediaryeffect model is constructed to test the transmission effect of environmental regulation onthe quality of economic development.

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