Impact Effect of Environmental Regulation Bring up the Value Chain of Chinese Manufacturing Industry

Provincial panel data from 2005 to 2015 was used to empirically examine the internal relationship between environmental regulation and the rise of manufacturing value chain from the national level, regional level and time-division level. And the potential transmission path and intensity of environmental regulation on the rise of manufacturing value chain were tested. The results show that:environmental regulation is helpful to the rise of value chain of manufacturing industry in China. The impacts of environmental regulation on the rise of value chain of manufacturing industry from high to low are the central region, the eastern region, the whole nation and the western region. The implementation of the national five-year planning environmental assessment policy can improve the rise of the value chain of the manufacturing industry, but the effect of the policy has a certain lag. Environmental regulation has a certain impact on the rise of the value chain of the manufacturing industry. However, the potential conduction path and its intensity of upgrading have strong regional heterogeneity. The industrial structure upgrading path of environmental regulation and the infrastructure construction path of environmental regulation are the most important conduction paths to enhance the value chain of the manufacturing industry.