Does Environmental Regulation Drive Economic Growth through Technological Innovation: Application of Nonlinear and Spatial Spillover Effect

Jing Chen () and Liyuan Hu
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Jing Chen: School of Economics and Management, Nanjing Institute of Technology, Nanjing 211167, China
Liyuan Hu: Business School, Hohai University, Nanjing 211100, China

Sustainability, 2022, vol. 14, issue 24, 1-15

Abstract: Based on provincial dynamic panel data from 2010 to 2019, this paper constructs a panel threshold model and explores the nonlinear relationship between environmental regulation and economic growth through channels of technological innovation. In addition, a spatial panel Durbin model is constructed to test the spatial spillover effects of environmental regulation and technological innovation on economic growth. The results show that environmental regulation has a significant positive impact on economic growth through channels of technological innovation. The interaction between environmental regulation and technological innovation has a single threshold effect on economic growth. When the intensity of environmental regulation exceeds the critical value, environmental regulation will change from promoting economic growth to inhibiting economic growth through channels of technological innovation. Environmental regulation has negative spatial spillover effect on economic growth of neighboring regions, while technological innovation has positive spatial spillover effect on economic growth of neighboring regions.

Keywords: environmental regulation; technological innovation; economic growth; threshold effect; spatial panel (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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