How Do Environmental Regulation and Environmental Decentralization Affect Regional Green Innovation? Empirical Research from China

Jing Tang and Shilong Li
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Jing Tang: School of Management Science and Real Estate, Chongqing University, Chongqing 400044, China
Shilong Li: School of Management Science and Real Estate, Chongqing University, Chongqing 400044, China

IJERPH, 2022, vol. 19, issue 12, 1-16

Abstract: Green innovation is vital in transforming China’s economic development from high speed to high quality. Environmental regulation plays an important role in stimulating regional green innovation, and appropriate environmental decentralization is the institutional basis to consolidate the innovation compensation of environmental regulation. Clarifying the relationship among environmental regulation, environmental decentralization, and green innovation is of great theoretical and practical significance for regional environmental management and green innovation development. This paper incorporates environmental regulation, environmental decentralization, and regional green innovation into the same analytical framework and constructs a fixed-effects model and a threshold panel model to empirically examine the intrinsic relationship between them based on panel data of 30 Chinese provinces from 2006 to 2015. The estimation results indicate that environmental regulation has a positive impact on regional green innovation, which is greater in developed regions than in underdeveloped regions. Environmental decentralization plays a negative role in regional green innovation, with underdeveloped regions being affected to a greater extent. The impact of environmental regulation on regional green innovation shows a threshold characteristic with the change of the degree of environmental decentralization, while the green innovation utility of environmental regulation gradually decreases with the increase of the degree of environmental decentralization.

Keywords: environmental regulation; environmental decentralization; regional green innovation; fixed-effects model; threshold panel model (search for similar items in EconPapers)
JEL-codes: I I1 I3 Q Q5 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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