An Empirical Study of Environmental Regulation on China's Industrial Economic Growth

Since the Reform and Opening, China's industrial economy has achieved rapid development. However, the contradiction between industrial economic development and environmental protection is becoming more and more prominent, scholars start to pay close attention to the relationship between environmental regulation and industrial economic growth. This paper takes provincial panel data in China from 2004 to 2018 to construct an econometric model of environmental control intensity and industrial economic growth, and analyzes the impact of environmental regulation on industrial economic growth through static fixed effect model, dynamic system GMM model and quantile model. It also analyzes the differences of the impact of environmental control on industrial economic growth in eastern, central and western regions. The results show that, on the whole, the relationship between environmental control and China's industrial economic growth is U-shaped, that is, industrial economic growth will first decline and then rise with the increase of environmental control intensity. Viewed from different regions, the impact of environmental control on industrial economic growth in eastern, central and western regions is all U-shaped, and the eastern and central regions break through the inflection point of U-shaped curve earlier than the western regions.