Environmental regulation effect on the different technology innovation-based the empirical analysis

Area of Science:

• Environmental Economics
• Innovation Management
• Corporate Sustainability

Background:

• Understanding how diverse environmental regulations influence corporate green technology innovation (GTI) is crucial for sustainable development.
• Existing research often examines regulations individually, necessitating a comparative analysis of different regulatory types.

Purpose of the Study:

• To investigate the impact mechanisms of command-based (ER1), market-oriented (ER2), and voluntary (ER3) environmental regulations on corporate GTI.
• To analyze the moderating roles of corporate R&D investment and government support in the relationship between environmental regulations and GTI.
• To explore variations in GTI performance across different enterprise characteristics and regions.

Main Methods:

• Utilized patent data (green invention and utility model patents) to measure corporate GTI.
• Employed benchmark regression and moderating effect models using data from Chinese A-share listed companies.
• Analyzed the influence of regulatory types, R&D investment, and government support on GTI.

Main Results:

• All three regulatory types (ER1, ER2, ER3) positively impact corporate GTI, demonstrating a synergistic effect.
• R&D investment moderates the relationship between market-oriented regulations and GTI positively, but negatively for command-based and voluntary regulations.
• GTI performance varies significantly based on enterprise region, ownership, factor density, and industry type; policy impacts are predominantly short-term.

Conclusions:

• Environmental regulations are effective drivers of corporate green technology innovation, with a combined approach yielding better results.
• Tailoring environmental policies to specific corporate characteristics and regional contexts is essential for maximizing GTI.
• The findings offer valuable insights for policymakers aiming to foster green development and achieve sustainable goals in developing economies.