Heterogeneous relations among environmental regulation, technological innovation, and environmental pollution

In this study, interprovincial panel data of China from 2011 to 2020 are selected and empirically examined to determine the effects of three types of environmental regulation tools: command-and-control, market-incentive, and public-participation types. Then, hierarchical regression analysis and instrumental variables are used to analyze and verify the mediating role of technological innovation. Results show no significant relationship between command-and-control regulation and environmental pollution, while market-incentive and public-participation regulations have a significantly negative inhibitory effect on environmental pollution and contribute to pollution reduction. In addition, product and process innovations play partially mediating roles between market-incentive regulation and environmental pollution and between public-participation regulation and environmental pollution, respectively, thus indicating that technological innovation is an effective way to reduce pollutant emissions. Compared with product innovation, process innovation has a better effect on pollution emission reduction but a smaller incentive effect under environmental regulation. This finding indicates that enterprise technology innovation and environmental regulation fail to achieve a suitable match for maximizing environmental benefits. Further analysis shows that the effects of the three types of environmental regulation tools on reducing pollution emissions vary in different periods and show significant changes around 2010. The effects of command-based regulation weaken, while those of the pollution abatement of market-incentive and public-participation regulations increase.