Relations between factor-market distortion and environmental pollution– analysis of intermediate effect based on technological innovation.

Factor-market distortion could cause misallocation of capital and talent resources, which in turn has profound influences on environmental pollution. In this essay, the panel data of 30 provinces and cities China from 2008 to 2017 are adopted to study the influences of factor-market distortion on industrial wastewater discharge as well as the intermediate effect of technological innovation with the analytical method of intermediate effect. The results show that factor-market distortion has both direct and indirect effects on industrial wastewater discharge and that technological innovation functions as a partial intermediary in the process of factor-market distortion influencing industrial wastewater discharge, with the intermediate effect value of 18.8%. With the improvement of technological innovation level, an inverted U-shaped curve law of “intensifying first and then improving” appears between factor-market distortion and industrial wastewater discharge. Based on these countermeasures are raised in this essay with the aim to provide data support for improving regional environmental quality. [ABSTRACT FROM AUTHOR]