The Empirical Analysis of the Relationship between Environmental Regulation and Total Factor Productivity Based on the Two Stage of DEA-TOBIT: Evidence from the Provincial Data in China

The paper estimates and explains the relationship between environmental regulation and total factor productivity,evidence from the provincial data in China since 1992,based on the two stage of DEA-Tobit model.The findings are:firstly,The total factor productivity has been on the rise since 1992,depending on the promotion of technology progress,and there is time series and regional characteristics in the TFP index during the sample period;Secondly,there is some certain in the relationship between environmental regulation and total factor productivity,supporting the Porter Hypothesis.Thirdly,there is no significance in the time dummy variables of the effect coefficient,but not in the case for region at all.It reflects the more stringency of environmental regulation the eastern regions employ,the more high scores that of TFP indexes embrace,which maybe correlated with the stage industrialization of the region,the game theory of the federal and local government’s environmental policy,and the spillover effect of the technology from FDI.