Effects of environmental regulation on adjustment of agricultural industrial structure--An empirical study based on panel data of 31 provinces in China

Using the panel data of 31 provinces in China between 2000 and 2018, this study theoretically and empirically analyses the impact of environmental regulations on the adjustment of the agriculture industrial structure from the perspectives of rationalisation and optimisation. Overall, variability in the impact of environmental regulation on the adjustment of the agricultural industrial structure is identified: a negative influence on the rationalisation of agricultural industrial structure and a positive influence on the optimisation of agricultural industrial structure. The impact of environmental regulations on the adjustment of agricultural industrial structure also reflects "large country characteristics": environmental regulations are more significant at the medium and low industrial structure levels. Environmental regulation significantly impacts the rationalisation of agricultural industrial structure in central and western regions and its optimisation in eastern and central regions. Through the panel threshold model test, this paper further finds that the effect of environmental regulations on the adjustment of agricultural industrial structure is not invariant. However, there is a non-linear relationship with significant threshold characteristics. Based on the above results, some countermeasures are suggested.