Impact of Heterogeneous Environmental Regulations on Green Innovation Efficiency in China’s Industry

Junfang Hao (), Wanqiang Xu, Zhuo Chen, Baiyun Yuan and Yuping Wu
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Junfang Hao: The Research Center of Energy Economy, School of Business Administration, Henan Polytechnic University, Jiaozuo 454003, China
Wanqiang Xu: College of Public Administration, Huazhong University of Science and Technology, Wuhan 430074, China
Zhuo Chen: The Research Center of Energy Economy, School of Business Administration, Henan Polytechnic University, Jiaozuo 454003, China
Baiyun Yuan: The Research Center of Energy Economy, School of Business Administration, Henan Polytechnic University, Jiaozuo 454003, China
Yuping Wu: The Research Center of Energy Economy, School of Business Administration, Henan Polytechnic University, Jiaozuo 454003, China

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

Abstract: Innovation is the primary driving force for development, and green innovation efficiency (GIE) plays a key role in regional sustainable development. Moreover, environmental regulations (ERs) are also crucial for innovation and green transformation. Considering the heterogeneity of ERs, we assess the dynamic GIE in the industrial sectors of China. We detect their spatial clustering characteristics, and distinguish the impacts of ERs. Results suggest that there exist significant differences in GIE. Provinces such as Hainan, Guangdong and Zhejiang are ranked high, while Gansu, Inner Mongolia and Ningxia are ranked at the bottom, which shows some spatial dependence. The relationship between the administrative regulation and GIE demonstrates a U-shape, and has not reached a critical point, whereas the relationship between the market-based regulation and GIE possesses an inverted U-shape, which is highly significant. Furthermore, a positive linear relationship exists between the lagged public participation regulation and GIE. This paper also proposes that the economic development level and industrial structure are vital factors in accelerating industrial GIE. These conclusions provide scientific support for formulating regional transformation strategies.

Keywords: environmental regulation; green innovation efficiency; spatial clustering; system GMM model (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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