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1672Ensuring that different market economic participants have an equal competitive standing is a prerequisite for maintaining the normal development of the market economy and creating a free and healthy business environment. In the case that the concept of fair competition has become the basic consensus of the whole society, the impact of environmental regulations on the market competition environment and competitor behaviors reveals many conflicts with fair competition principles. However, the relationship between the two has not received sufficient theoretical consideration and empirical exploration in the literature.
Based on the above, this paper first presents the theoretical logic of the intrinsic connection between environmental regulations and fair competition. Then, from the perspective of heterogeneous firms, it summaries specific pathways through which environmental regulations affect fair competition: regulatory legislation that does not consider firm heterogeneity, selectivity and bias of regulatory enforcement, regulations being used as a tool for unfair competition, and inducing firms to relocate to regions with weaker regulatory intensity, which reflects the necessity of practicing fair competition in environmental governance. Subsequently, this paper delves into the deeper reasons for conflicts between the two from practical and theoretical levels. It identifies imperfections in regulation modes as a direct cause of unfair competition. The lack of professionalism and independence in local regulatory agencies exacerbates this situation, which can be attributed to the fundamental issue that fair competition has not been explicitly included at the theoretical level. Finally, this paper proposes solutions from four aspects: introducing fair competition into environmental regulations, refining existing regulation modes based on firm heterogeneity, enhancing the professionalism and independence of local environmental regulatory agencies, and coordinating regional regulation policies, so as to ensure the full integration of fair competition principles throughout the process of environmental regulations.
