Environmental Regulation, Government R&amp;D Funding and Green Technology Innovation: Evidence from China Provincial Data

Guo, Yingyuan; Xia, Xingneng; Sheng, Zhang; Zhang, Danping

doi:10.3390/su10040940

Cited by 292 publications

(227 citation statements)

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“…The results show that although process innovation and product innovation are both intermediate factors between environmental regulation and enterprise performance, environmental regulation plays a stronger role in promoting enterprise performance through product innovation rather than production process innovation. Guo, Xia, and Zhang () even believed that strict environmental regulation could promote green product innovation and inhibit green process innovation in the presence of governmental support for R&D.…”

Section: Environmental Regulation and Product Innovationmentioning

confidence: 99%

“…Hu et al (2017) used data from 35 industrial sectors in China from 2001 to 2010 to verify the impact of environmental regulation on product innovation. The results show that although process innovation and product innovation are both intermediate factors between environmental regulation and enterpriseperformance, environmental regulation plays a stronger role in promoting enterprise performance through product innovation rather than production process innovation Guo, Xia, and Zhang (2018). even believed that strict environmental regulation could promote green product innovation and inhibit green process innovation in the presence of governmental support for R&D.In addition,Becker and Egger (2013) asserted that product innovation is a key factor in creative destruction and Schumpeter's growth model.…”

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confidence: 96%

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Environmental Regulation and Enterprise Innovation: A Review

et al. 2020

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The impact of environmental regulation on enterprise innovation is closely related to the competitiveness of the enterprise and sustainable development of the regional economy, but existing research does not provide a consistent view. This paper summarizes the impacts of environmental regulation on enterprise innovation from the perspectives of technological innovation, product innovation, system innovation and ecological innovation. We find that the impacts of environmental regulation on enterprise innovation behaviour are complex, and that the impacts can be reflected together by the four aspects above and even by their interaction. Moreover, the impacts are not limited to the creation of new technologies, products, and systems but also include their adoption and application. In particular, whether the Porter hypothesis is true and which versions of the Porter hypothesis environmental regulation causes in enterprise innovation depend on enterprise characteristics, means of environmental regulation, and enterprises' strategic behaviours in an enterprise ecosystem. Finally, we propose five potential research directions: quantifying the degree of enterprise innovation caused by environmental regulation, the impacts of environmental regulation on sustainable economic development from an enterprise ecosystem perspective, the impacts of enterprise innovation on environmental regulation, the role of enterprise initiative in the relationship between environmental regulation and enterprise innovation, and social security issues and the integration of eliminated enterprises resulting from environmental regulation.

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Section: Environmental Regulation and Product Innovationmentioning

confidence: 99%

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confidence: 96%

Environmental Regulation and Enterprise Innovation: A Review

et al. 2020

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“…Dechezlepretre and Sato [17] found that environmental regulations induce innovation in clean technologies, but the resulting benefits do not appear to be sufficiently large to outweigh the costs of regulations for the regulated entities. Guo et al [18] found that an inflection point exists in the role of environmental regulation in green technology innovation, and China is in the inhibition stage before the inflection point. Cohen and Tubb [19] agreed with the strong version of the Porter hypothesis whereby strict but flexible environmental regulations induce innovation and, over time, increase country-level competitiveness.…”

Section: Literature Reviewmentioning

confidence: 99%

Does Environmental Regulation Repress the International R&D Spillover Effect? Evidence from China

2019

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The inconsistent direction between environmental regulation and technological progress is receiving increasing attention, but scholars have neglected the relationship between the two in the open economy. Against this background and based on the panel data of 30 provinces in China from 2003 to 2015, we examined the effect of environmental regulation on the international research and development (R&D) spillover effect and its regional differences in three economic regions: The Bohai Rim, Pan-Yangtze River Delta, and Pan-Pearl River Delta economic regions. The results show that (1) at China's macro level, and at that of the three economic regions, the level of environmental regulation and international R&D spillover from import trade or foreign direct investment channels show an inverted N relationship; that is, in all provinces the weak environmental regulation initially inhibited the international technology spillover. However, as the intensity of environmental regulation increased, the level of international R&D spillovers continually rose, but overly harsh environmental regulation was not conducive to the overflow of international technology; (2) the adoption of different environmental regulations will affect the international R&D spillover effect and the inverted N relationship of environmental regulation, thus changing the inflection point of environmental regulation; and (3) currently, the level of environmental regulation is relatively low, as most provinces have not yet broken through the first turning point of the inverted N, and only a few provinces are within the rising stage of the inverted N curve. This paper provides corresponding policy suggestions according to the above conclusions.

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“…The effects of a combination of environmental taxes and environmental subsidies, remain different. Guo et al [26] found that direct government funding and tax incentives could promote green technology innovation, but the promotion of government tax incentives to green technology innovation was not significant. Yuan and Zheng [27] found that the U-shaped relationship between environmental regulation and clean technology innovation was generally not affected by government subsidies.…”

Section: Literature Reviewmentioning

confidence: 99%

“…From (25) and (29), it can be seen that when considering the externalities, when the market is a non-competitive market, the overall social welfare effect of the environmental tax policy and the environmental subsidy policy is vague. From (26) and (30), it can be seen that when the market is a competitive market, the overall social welfare effect increases when the subsidies for environmentally friendly goods increase, and the overall social welfare effect decreases when the tax increases for non-environmental products.…”

Section: Welfare Effects Of Environmental Regulation Policy With Extementioning

confidence: 99%

Analysis of the Social Welfare Effect of Environmental Regulation Policy Based on a Market Structure Perspective and Consumer

Wang

2019

Sustainability

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With the implementation of regulatory policies, some new problems are emerging, such as uneven governance effects, large differences in economic growth, and social welfare inequalities. In order to promote the sustainable development of both the economy and the environment, it is necessary to provide theoretical explanations for the above phenomena. Thus, this paper constructs a theoretical model of social welfare effects based on the Cournot model. Additionally, the scenario analysis method is used to analyze the social welfare effects of environmental control policies from the perspective of market structure and consumer preferences. The findings of the scenario analysis are as follows: (1) the social welfare effect of environmental subsidy policy is greater than the social welfare effect of environmental tax policy when the absolute difference between the external value of environmentally friendly goods and non-environmental goods is less than 7.4 units and (2) the implementation of environmental subsidy policies or environmental tax policies will improve social welfare when the market structure is a completely competitive market and when both of the externalities of environmentally friendly commodities and non-environmental commodities are not the same at intervals (0, 0.335) and (−0.335, 0). We conclude that (1) the government should consider externalities, market powers, and consumer preferences when implementing environmental regulation policies and (2) the government can achieve a trend toward the development of environmentally friendly goods by guiding consumer preferences and harnessing market power.

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Environmental Regulation, Government R&D Funding and Green Technology Innovation: Evidence from China Provincial Data

Cited by 292 publications

References 50 publications

Environmental Regulation and Enterprise Innovation: A Review

Environmental Regulation and Enterprise Innovation: A Review

Does Environmental Regulation Repress the International R&D Spillover Effect? Evidence from China

Analysis of the Social Welfare Effect of Environmental Regulation Policy Based on a Market Structure Perspective and Consumer

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