The Impact of Environmental Regulation on the International Competitiveness of Heavy Polluting Industries in China

Abstract

The environmental regulation has been widely debated recently. In this paper, we have used the panel data of 2008-2014 on China’s seven typical heavy polluting industries, and constructed the Indicator System. By establishing the Environmental Regulation - International Competitiveness model (ERIC), we analyze The Impact of Environmental Regulation on the International Competitiveness of Heavy Polluting Industries. The main conclusion is that the stronger the environmental regulation, the lower the international competitiveness. China's pollution-intensive industries don’t have comparative advantage, so they’re not a “pollution haven†of developed countries.