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Research on the impact of environmental regulation on enterprise technology innovation—an empirical analysis based on Chinese provincial panel data

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Abstract

Under the pressure of environmental degradation and resource depletion, Chinese companies are confronted with the need for transformation and upgrading promoted by technological innovation. However, environmental regulation can help to promote technological innovation. Based on the panel data of China’s 30 provincial levels during 2009–2016, firstly, this paper describes the connotation of environmental regulation and measurement intensity of the regulation. Then, the anti-driving effect of environmental regulation on enterprise technology innovation is analyzed. Finally, this paper analyzes the spatial heterogeneity of environmental regulation on enterprise technology innovation. The empirical results are as follows: (1) formal environmental regulation has effectively enhanced technological innovation of enterprises. However, informal environmental regulation generally can positively drive enterprise technology innovation. (2) The impact of environmental regulation on technological innovation of enterprises is spatially heterogeneous. On the one hand, the impact of formal environmental regulation on technological innovation has significant regional differences. The Eastern China generally supports the “Porter hypothesis,” while the Middle of China and Western China have the opposite performance. On the other hand, there is a threshold effect between environmental regulation and technological innovation. When the economic development level of the first lagging period is used as the threshold variable, with the gradual improvement of the economic development level, the technological innovation of the enterprise has the effect of first suppressing and promoting, and then verifying the threshold characteristics of environmental regulation on technology innovation.

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Notes

  1. The Tibet Autonomous Region, the Macao Special Administrative Region, and the Hong Kong Special Administrative Region are not included in the 30 provinces.

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Acknowledgments

We would like to thank the anonymous referees for their helpful suggestions and corrections on the earlier draft of our paper, upon which we have improved the content.

Funding

The authors gratefully recognize the financial support from the National Natural Science Foundation of China (71874189).

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Authors and Affiliations

  1. School of Management, China University of Mining and Technology, Xuzhou, 221116, People’s Republic of China

    Yan Song, Tingting Yang & Ming Zhang

  2. Jiangsu Energy Economy and Management Research Base, China University of Mining and Technology, Xuzhou, 221116, People’s Republic of China

    Yan Song & Ming Zhang

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  1. Yan Song
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  2. Tingting Yang
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  3. Ming Zhang
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Correspondence to Ming Zhang.

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Responsible editor: Eyup Dogan

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Song, Y., Yang, T. & Zhang, M. Research on the impact of environmental regulation on enterprise technology innovation—an empirical analysis based on Chinese provincial panel data. Environ Sci Pollut Res 26, 21835–21848 (2019). https://doi.org/10.1007/s11356-019-05532-0

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  • DOI: https://doi.org/10.1007/s11356-019-05532-0

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