Research on Regulation Efficiency and TFP of Environmental Regulation in China from 1999 to 2008

This paper uses directional distance function to measure the environmental technology efficiency and environmental regulation cost under four environmental regulation status on different areas in China from 1998 to 2008.based on Malmquist-Luenberger index method,the authors measure total factor productivity(TFP) as well as their decomposition under environmental regulation.Finally,we examine the factors which influence the TFP.We arrive at conclusions as follows: environmental technology efficiency improves when environmental regulation is taken into account,but with disparity among different regions;stricter environmental regulation brings higher costs;TFP improved as environmental regulation was taken into practice;FDI,capital deepening,industrial development level as well as environmental protection has remarkable influence on TFP under environmental regulation.