Related Experiment Video
Updated: Aug 16, 2025

Evaluating the Effect of Roadside Parking on a Dual-Direction Urban Street
Published on: January 20, 2023
Do Environmental Regulations Promote or Inhibit Cities' Innovation Capacity? Evidence from China
Xiaowen Zeng1, Ming Jin2, Shuang Pan3
1The Faculty of Economics, Guangdong University of Finance & Economics, Guangzhou 510320, China.
Abstract:
The "Porter Hypothesis" proposes that appropriate environmental regulations would promote firm innovation. This study aims to build a theoretical model for illustrating the impact and mechanism of environmental regulation on urban innovation through a panel of 281 Chinese prefecture-level cities during 2003-2016. The results indicated that an increase in environmental regulation markedly suppressed the innovative capacity of Chinese cities during the sample period. This inhibitory effect is primarily transmitted through two mediating variables: lower regional fiscal revenue and reduced manufacturing output. Moreover, improved regional economic development level helps generate positive incentives for environmental regulation and mitigate its inhibitions to innovation. Environmental regulation and urban innovation might have a non-linear U-shape relation, with the former helping improve urban innovation capacity upon reaching a particular level.
Related Concept Videos
Global Regulatory Systems
Design Example: Sustainability in Concrete Building
There are multiple approaches to achieve sustainability in a commercial concrete building. For instance, construct a concrete parking area under the building, utilizing pervious concrete paver blocks in open areas to facilitate rainwater collection through an underground...
Drug Control Governance: Regulatory Bodies and Their Impact
Environmental Applications of Microorganisms
Environmental Influences on Intelligence
Design Example: Analyzing Capacity Contours for Flood Risk Assessment

