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Air pollution and technological innovation in China: a two-way dynamic perspective

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Abstract

This study establishes a simultaneous equations model to identify the bi-directional causal relationship between technological innovation and air pollution from a two-way dynamic endogenous perspective, and empirically through a three-stage least squares estimator using panel data from China’s 175 cities over 2008–2019. We find a significantly negative bi-directional relationship between technological innovation and air pollution, with the regression coefficients of −0.378 and −0.440. Economic development level, foreign direct investment, innovation fund and personnel inputs, and government financial support all positively, significantly affect innovation. Air pollution level produces significantly negative effects on invention, utility model, and design patents’ output with regression coefficients of −0.128, −0.070, and −0.117. It indicates that air pollution produces more obvious negative influences on invention patent output than non-invention patent output. An inverted-U-shaped relationship exists between emissions and economic development level. Foreign trade and secondary industry development (infrastructure level) increase (decrease) emissions. Decision-makers should consider the joint influences of all factors; invest to help firms reduce air pollution control and innovation costs; improve the environment, infrastructure, and policies to attract talents; enhance trade and investment liberalisation and facilitation; attract more foreign direct investment inflows; and improve secondary industry development’s quality.

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Availability of data and materials

The datasets used and/or analyzed during the current study are available from the corresponding author on reasonable request.

Notes

  1. Full Text of Air Pollution Prevention and Control Action Plan on 12 September 2013. Available at: http://www.gov.cn/zwgk/2013-09/12/content_2486773.htm

  2. Full Text of the 13th Five-Year Plan for National Economic and Social Development of the People's Republic of China. Available at: http://www.gov.cn/xinwen/2016-03/17/content_5054992.htm

  3. Full Text of Report on the Work of the Government on 5 March 2017. Available at: http://www.xinhuanet.com/english/china/2017-03/16/c_136134017.htm

  4. Full Text of Three-Year Action Plan on Defending the Blue Sky. Available at: http://www.gov.cn/zhengce/content/2018-07/03/content_5303158.htm

  5. Full text of the outline of the 14th Five-Year Plan and Vision 2035 for the National Economic and Social Development of the People's Republic of China. Available at: http://www.gov.cn/xinwen/2021-03/13/content_5592681.htm

  6. Communique of the Fifth Plenary Session of the 18th CPC Central Committee. Available at: http://www.xinhuanet.com/politics/2015-10/29/c_1116983078.htm

  7. Full text of Xi Jinping's report at 19th CPC National Congress on 18 October 2017. Available at: http://www.china.org.cn/20171105-002.pdf

  8. In 2020, China's total investment in environmental pollution control is 1,063.89 billion yuan. Available at: https://m.gmw.cn/baijia/2022-02/23/1302817378.html

  9. Ministry of Ecology and Environment of the People’s Republic of China. 2020 Report on the State of Ecological Environment in China. May 2021. Available at: http://www.mee.gov.cn/hjzl/sthjzk/zghjzkgb/

Abbreviations

TIL:

Technological innovation level

APL:

Air pollution level

EDL:

Economic development level

FDI:

Foreign direct investment

IFI:

Innovation fund input

IPI:

Innovation personnel input

GFS:

Government financial support

FTL:

Foreign trade level

INL:

Infrastructure level

ISL:

Industrial structure level

IPG:

Invention patent granted

UPG:

Utility model patent granted

DPG:

Design patent granted

SDP:

Smoke and dust emissions per capita

NPA:

The number of patent applications per 10,000 people

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Acknowledgements

This work was supported by the National Social Science Fund of China under Grant [No.20BJL139] and Natural Science Foundation of Fujian Province [No.2021J01175]. New Author-I agree to the proposed new authorship shown in Section 4 and the addition of my name to the authorship list.

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Authors and Affiliations

  1. School of Economics, Fujian Normal University, Fuzhou City, 350007, Fujian Province, China

    Shoufu Lin, Yanqing Xie, Zhaozhi Wang, Lingyu Zhong & Lian Xiao

  2. School of Public Affairs, University of Science and Technology of China, No. 96, Jinzhai Road, Hefei City, 230026, Anhui Province, China

    Shanyong Wang

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  1. Shoufu Lin
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Lin, S., Xie, Y., Wang, Z. et al. Air pollution and technological innovation in China: a two-way dynamic perspective. Environ Dev Sustain (2024). https://doi.org/10.1007/s10668-024-04535-3

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