Porter Hypothesis,Environmental Regulation and Enterprises' Technological Innovation——The Comparative Analysis between Central China and Eastern China

Porter hypothesis advocates positive policies of environmental protection.It suggests that rigorous and appropriate environmental policies can stimulate enterprises' technological innovation.The cost of the innovation will be more than covered by the benefits it brings,then the enterprises can be even more competitive.From the research of the eastern and central regional panel data of 1999-2007,we can conclude that the more developed eastern supports the Porter hypothesis but the more backward central is on the opposite.According to this comparative result,we can reasonably explain the causes of the environmental Kuznets curve(EKC) from a new perspective.And the article also presents relevant policy recommendations to benefit the balance of economic growth and environmental protection based on the foundation of the variance analysis.