The road to sustainable development: exploring the impact of green technology innovation and environmental regulation on the green competitiveness of heavily polluting manufacturing industries

Yilin Zhao, Juan Shang, Xiaodong Yang and Guanqing Shi

Journal of Environmental Planning and Management, 2025, vol. 68, issue 13, 3144-3171

Abstract: This study tests the impact of green technology innovation (GTI) from green innovation output (GTIO) and green innovation efficiency (GTIE) on green competitiveness (GTFP) and the non-linear moderating effect of environmental regulation (ERI) using a sample of 156 listed enterprises in heavily polluting manufacturing industries from 2016 to 2021. Results show that GTIO promotes GTFP, but GTIE inhibits GTFP. ERI has a significant “U-shaped” moderating effect between GTI and GTFP. Non-state-owned enterprises have relatively weak GTI ability but stronger sensitivity to ERI. Enterprises with high market concentration have outstanding GTI strength and can form positive interactions with ERI. High GTFP enterprises’ GTI has a more positive impact on GTFP, but the ERI is better coupled with GTIO in low GTFP enterprises. Our findings imply that policymakers should formulate appropriate environmental policies for enterprises in different situations, while enterprises should respond positively to ERI through multiple channels to enhance green competitiveness.

Date: 2025
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DOI: 10.1080/09640568.2024.2342721

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