Does Environmental Regulation Achieve “Incremental Quality” of Green Technology Innovation? —— Evidence from the Target Responsibility System of Environmental Protection

Tao Feng, Zhao Jinyu and Zhou Hao
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Tao Feng: Institute of Industrial Economics of Jinan University; Lab of Industrial Big Data Application and Economic Decision-Making Research, Jinan, China
Zhao Jinyu: Institute of Industrial Economics of Jinan University, Jinan, China
Zhou Hao: Institute of Industrial Economics of Jinan University, Jinan, China

China Finance and Economic Review, 2025, vol. 14, issue 3, 67-86

Abstract: The target responsibility system of environmental protection, introduced during the 11th Five-Year Plan period, is a key feature of China’s environmental regulation policy framework. Guided by the principle of high-quality development, this system addresses the challenge of incentivizing green technology innovation. This paper examines how the target responsibility system of environmental protection affects the quantity and quality of green technology innovation activities across society, identifying environmentally friendly invention patents at the International Patent Classification (IPC) group level. Using the difference-in-differences method, the study finds that while the target responsibility system of environmental protection has increased the number of green patent applications, it has also led to a decline in the quality of these innovations. Further analysis reveals that enterprises with weaker innovation capabilities are the primary contributors to the decline in innovation quality, particularly in the field of atmospheric pollution control technology, which is subject to environmental constraints, as well as in industries with moderate to light pollution. Notably, the substantive examination system effectively ensures the quality of authorized patents, mitigating the distortion effect of policies on innovation quality. The findings provide theoretical support and practical recommendations for deepening the reform of the target responsibility system of environmental protection, establishing a market-oriented green technology innovation system, and optimizing the intellectual property system.

Keywords: target responsibility system of environmental protection; green technology innovation; patent quantity; patent quality (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:bpj:cferev:v:14:y:2025:i:3:p:67-86:n:1004

DOI: 10.1515/cfer-2025-0016

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