The Impact of Environmental Regulation on Collaborative Innovation Efficiency: Is the Porter Hypothesis Valid in Chengdu–Chongqing Urban Agglomeration?

Zhaohan Wang, Ying Fu () and Junqian Wu
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Zhaohan Wang: School of Economics, Southwestern University of Finance and Economics, Chengdu 611130, China
Ying Fu: School of Economics and Business Administration, Chongqing University of Education, Chongqing 400065, China
Junqian Wu: Institute of Western China Economic Research, Southwestern University of Finance and Economics, Chengdu 611130, China

Sustainability, 2024, vol. 16, issue 5, 1-28

Abstract: Under the advocacy of sustainable and innovation-driven development, the potential impact of environmental regulation on collaborative innovation has become a controversial issue. This article uses panel data from 16 cities in the Chengdu–Chongqing urban agglomeration from 2011 to 2021 to analyze the impact of environmental regulation on collaborative innovation efficiency. First, this study uses the two-stage DEA model to analyze each city’s industry–university–research collaborative innovation efficiency. Then, the impact of environmental regulation on collaborative innovation is analyzed using the Tobit model. The results show that in the temporal dimension, the collaborative innovation efficiency of each city shows an upward trend. This demonstrates the outstanding effectiveness of transforming knowledge into technology for economic development. In the spatial dimension, the collaborative innovation efficiency of this urban agglomeration shows a “high in the center and low in the surroundings” pattern. The Tobit regression model shows that environmental regulation significantly impacts collaborative innovation in the Chengdu–Chongqing urban agglomeration. Command-and-control environmental regulation policies have a threshold effect on collaborative innovation, verifying the Porter hypothesis that appropriate environmental regulation promotes innovative activities. The results provide an initial basis for formulating regional environmental policies to achieve a win–win situation for innovation and sustainability in underdeveloped regions.

Keywords: collaborative innovation; environmental regulation; two-stage DEA–Tobit model; urban agglomeration; the Porter hypothesis (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2024
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