Management Review ›› 2021, Vol. 33 ›› Issue (12): 60-70.

• Economic and Financial Management • Previous Articles     Next Articles

Mechanism of How Air Pollution Control and Environmental Regulation Influence Enterprises' Inventory: Based on the Data of Industrial Enterprises in Guangdong Province

Wang Xueqing, Liu Yong   

  1. School of Business Administration, South China University of Technology, Guangzhou 510641
  • Received:2018-11-05 Online:2021-12-28 Published:2022-01-25

Abstract: From the perspective of systematics, we construct a system dynamics model of the effect that air pollution control and environmental regulation have on industrial enterprises' inventory, and study how the industrial enterprises' inventory and industrial economy in Guangdong Province are influened by changes in policies regarding emission reduction, industrial pollution control investment, transportation infrastructure investment and scientific & technological investment. The simulation results show that either emission reduction policy or industrial pollution control investment promotion policy can alleviate the inventory pressure faced by industrial enterprises, and a synergistic effect of "1+1>2" on inventory pressure can be produced if both policies are implemented simulaneously. Transportation infrastructure investment promotion policy and technology investment promotion policy can also alleviate the inventory pressure faced by industrial enterprises. As these policies last and strengthen, they will become better able to alleviate inventory pressure and contribute more positively to industrial economy. Finally, according to the simulation results, relevant policy recommendations are proposed to reduce the inventory of industrial enterprises and promote the development of industrial economy from the perspective of environmental regulation and investment policies.

Key words: air pollution, environmental regulation, transport infrastructure, enterprises' inventory, system dynamics