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Environmental regulation, environmental responsibility, and green technology innovation: Empirical research from
Yuanyang Wang1, Yanlin Yang2, Chenyu Fu3
1Economics and Management School, Wuhan University, Wuhan, Hubei, China.
Abstract:
Innovation and green are the directions to promote the circular economy and environmental sustainability at the corporate level. This paper examines the impact of environmental regulation (pollution charge) on green technology innovation and the mediating role of corporate environmental responsibility. Our results indicate that: (1) Environmental regulations stimulate manufacturing enterprises' environmental responsibility and green technology innovation. It is worth noting that corporate environmental responsibility strengthens the relationship between environmental regulation and green technology innovation. (2) Further investigation reveals that R&D expenditure and environmental investment have greatly strengthened the positive effect of environmental regulation on green technology innovation. (3) With more detailed disclosure about enterprises' environment-related information, the more outstanding stimulation effects of environmental regulation. Discussions on the features of enterprise location have revealed that, if the goal of environmental protection is set too high or if the fiscal decentralization is too strong, implementation of environmental regulation would not achieve desirable results. Accordingly, we need to optimize the collection of environmental taxes, strengthen the enterprises' environmental responsibility, and increase investment in R&D and environment protection. Meanwhile, the execution of environmental regulation should also take into account the institutional environment and governance features of the enterprise locations.
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