Impact of environmental regulations on economic development

Abstract

At present, China’s economy is developing rapidly, and environmental protection has become an important aspect of people’s attention. The government has issued relevant documents requiring that while developing the economy, we should pay attention to environmental protection, or even develop the economy under the premise of environmental protection. This paper analyzes the inter-provincial panel data from 2008 to 2018 and constructs a panel PVAR model. The study concludes that the relationship between environmental regulation and economic growth is a long-term dynamic relationship. Environmental regulation can promote economic growth. With the increase in protection, the intensity of environmental regulations has increased, and the impact on economic development has become more significant. It can be concluded that in China, to a certain extent, both environmental regulations and economic development can achieve a win-win situation.