Multiple environmental regulations and green technology innovation: a boundary theory perspective

Qingfeng Luo and Xi Zhao

Nankai Business Review International, 2024, vol. 16, issue 2, 183-207

Abstract: Purpose - Based on boundary theory, the authors try to clarify the boundaries of multiple environmental regulations. This paper aims to explore the strategic choices of multiple environmental regulations, analyze their spatial impact on green technology innovation and clarify the implementation priorities of multiple environmental regulations in various regions. Design/methodology/approach - The authors construct an asymmetric response model based on the boundary theory perspective to analyze the strategic choices of different environmental regulations. In addition, dynamic spatial econometric methods are used to empirically analyze the differentiated regulatory boundaries of command-control type, market-incentive and voluntary-participation in environmental regulations and their spatial effects on green technology innovation. Findings - Strict compulsory boundaries are formed in China when the command-control and market-incentive types are selected in a dynamic spatial and competitive game environment. When voluntary participation is selected, strict compulsory or loose basic boundaries are formed in each region. The command-control type is highly dependent on geographical distance, the market-incentive type is more dependent on an economic connection and the voluntary-participation type has obvious spatial spillover effects under the spatial weight matrix of geographical distance and economic connection. When Eastern China chooses voluntary participation in environmental regulation, the incentive effect on green technology innovation is the strongest. Middle China is the market-incentive type, and Western China is the command-control type. Command-control type and market-incentive type form strong complementary effects in dynamic spatial environments. Originality/value - From the boundary theory perspective, this study analyzes the differentiated dynamic spatial boundaries of command-control, market-incentive and voluntary-participation in environmental regulations. Analyze the spatial impact of multiple environmental regulations on green technology innovation and clarify the implementation priorities of multiple environmental regulations in various regions.

Keywords: Boundary theory; Command-control type; Market-incentive type; Voluntary-participation type; Environmental regulation; Green technology innovation (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eme:nbripp:nbri-06-2023-0053

DOI: 10.1108/NBRI-06-2023-0053

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