Flexible environmental policy, technological innovation and sustainable development of China’s industry: The moderating effect of environment regulatory enforcement

Yuan, Baolong; Zhang, Yang

doi:10.1016/j.jclepro.2019.118543

Cited by 205 publications

(111 citation statements)

References 112 publications

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“…This finding reflects that the stringency of environmental regulation in China is to the left of the inflection point and environmental policies are weakly enforced in that period. And then, it is demonstrated that China's environmental policies are significantly conducive to technological innovation in industry from 2006 to 2015 [47]. Industrial innovation appears to be a shift to green technology innovation [48], and the technology innovation efficiency in China's manufacturing industry shows an upward trend during 2003-2016 [49].…”

Section: Benchmark Regression Resultsmentioning

confidence: 99%

Environmental Regulation, Technological Innovation, and Export Competitiveness: An Empirical Study Based on China’s Manufacturing Industry

Liu

Xie

2020

IJERPH

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A current and universal challenge, particularly in developing nations, is the establishment of effective environmental regulation policies that protect the ecological environment without adversely affecting the international competitiveness of the domestic manufacturing industry. To deal with this dilemma, this study investigates the export competitiveness of China’s manufacturing industry from the viewpoint of export value added. The Porter hypothesis is applied for an empirical investigation of the effect of environmental regulation on export competitiveness and to determine the presence of intra-industry heterogeneity. Furthermore, this study seeks to understand the mechanisms through which environmental regulation affects export competitiveness by exploring the two main approaches to technological innovation. The findings reveal that environmental regulation has a promotion effect of approximately 2% on the export competitiveness of China’s manufacturing industry; however, this effect is non-linear and displays a “U-shaped” tendency, indicating that certain prerequisites must be fulfilled to validate the Porter hypothesis. In addition, the effect of environmental regulation displays significant intra-industry heterogeneity, which is evident primarily in heavily polluting sub-industries and to a lesser extent in moderately polluting sub-industries but insignificant in lightly polluting sub-industries. Environmental regulation also differs significantly in the mechanisms through which it affects different approaches to technological innovation. Independent research and development is affected by environmental regulation through the compliance cost effect, which limits export competitiveness, while technology introduction is affected by the innovation offset effect, which favors export competitiveness. These findings offer political implications for the sustainable development of the ecological environment and foreign trade.

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Section: Benchmark Regression Resultsmentioning

confidence: 99%

Environmental Regulation, Technological Innovation, and Export Competitiveness: An Empirical Study Based on China’s Manufacturing Industry

Liu

Xie

2020

IJERPH

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“…Cole and Elliott [28], Marconi [29], Nesta et al [30], and Liu and Xie [2] argued that the impacts of environmental regulation on export competitiveness might be heterogeneous across different countries or industries. In addition, Rexhäuser and Rammer [31], Banerjee and Gupta [32], and Yuan and Zhang [33] found that different types of environmental regulation policies possibly had distinct effects on competitiveness.…”

Section: Introductionmentioning

confidence: 99%

Does Environmental Regulation Affect Export Quality? Theory and Evidence from China

Xie

Sun

Wang

et al. 2020

IJERPH

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Most studies focus on the empirical investigation of the relationship between environment and trade, but they lack a systematic theoretical framework. To fill this gap, this study constructs an analytical framework of export competitiveness from the perspective of product quality, and reveals the theoretical mechanism of environmental regulation affecting export quality. We empirically examine the impact of environmental regulation on the export quality of China’s manufacturing industry, as well as its possible mechanism. Our findings show that environmental regulation can significantly promote the export quality upgrading of the manufacturing industry and that process and product productivity are two possible channels through which such regulation affects export quality, although their mediating effects are in opposite directions. The mediating effect of product productivity is greater than that of process productivity, indicating that environmental regulation mainly has an innovation offset effect on China’s manufacturing industry. For pollution-intensive industries, environmental regulation plays a significant promoting role through the channel of product productivity, but, for clean industries, environmental regulation has an inhibitory effect through the channel of process productivity. These findings provide important enlightenment for the coordinated development of China’s ecological civilization and trade power.

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“…In order to explore how they moderate the relationship, the mean of two moderating variables is respectively plus or minus a corresponding standard deviation to express the high and the low. The statistical values of Table 3 and Table 5 are substituted into Formula (1) to calculate the test results, as shown in Table 6. The test results show more clearly that institutional coverage and government subsidies weaken the U-shaped relationship between market expectation gap and enterprise innovation input.…”

Section: Gos Relation Function Shape and Color Effective Curvesmentioning

confidence: 99%

“…Moreover, "It is necessary to develop the real economy, continuously promote industrial modernization and improve the level of the manufacturing industry," as Xi Jinping has made many essential discussions on the transformation and upgrading of Chinese manufacturing. However, with the increasing downward pressure on the global economy and exacerbating market competition, the sustainable development of Chinese manufacturers is also facing multiple pressures of economic recession, resource shortage, technical update [1]. Facing these pressures, manufacturers must solve strategic problems such as how to allocate limited resources, enhance core competitiveness, and maintain healthy and sustainable value development.…”

Section: Introductionmentioning

confidence: 99%

Can the Gap and Rating of Market Expectation Promote Innovation Input of China Manufacturers?

Jiang

2020

Sustainability

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Under the strategic background of Made-in-China to Mind-in-China, how the capital market expectation affects enterprise innovation input has reached no coincident conclusion. This paper uses Chinese A-share manufacturing listed companies from 2010 to 2017 to investigate the internal mechanism among the gap and rating of market expectation and enterprise innovation input, and further explores the moderating effects of institutional coverage and government subsidies. The results show that: firstly, innovation input will first decrease and then increase with the market expectation gap increase. However, innovation input will first increase and then decrease with the market expectation rating increase. Secondly, when the institutional coverage and government subsidies increase, innovation input will remarkably transform from the first decrease and then increase into the first increase, then decrease with the market expectation gap increase. Finally, when institutional coverage is high and government subsidies are low, innovation input will remarkably transform from the first increase and then decrease into the first decrease, and then increase with the market expectation rating increases. These research findings can provide some academic support and policy references for managers to deal with effectively external performance pressures, institutional coverage, and optimize government subsidies to promote manufacturers’ innovation-driven upgrading.

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Flexible environmental policy, technological innovation and sustainable development of China’s industry: The moderating effect of environment regulatory enforcement

Cited by 205 publications

References 112 publications

Environmental Regulation, Technological Innovation, and Export Competitiveness: An Empirical Study Based on China’s Manufacturing Industry

Environmental Regulation, Technological Innovation, and Export Competitiveness: An Empirical Study Based on China’s Manufacturing Industry

Does Environmental Regulation Affect Export Quality? Theory and Evidence from China

Can the Gap and Rating of Market Expectation Promote Innovation Input of China Manufacturers?

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