Research on the Impact of Environmental Regulations on the Green Innovation Efficiency of Chinese Industrial Enterprises

Abstract

Green innovation efficiency takes environmental and energy factors into consideration. Enhancing green innovation efficiency is a fundamental requirement for China's innovation-driven development. This paper uses the data of industrial enterprises from 30 provinces (cities, districts) in China from 2007 to 2019 and the data envelopment analysis-slack-based measure (DEA-SBM) method to establish a new model for measuring the efficiency of green innovation in industrial enterprises, and compares that efficiency in three major regions of China. In short, the paper examines the relationship between environmental regulations and the green innovation efficiency of industrial enterprises. The research results show that there are significant regional differences in the efficiency of green innovation in Chinese industrial enterprises, and the relevant regions can basically take into account innovation incentives and environmental protection. Industrial enterprises in the eastern region have higher levels of green innovation efficiency, while the central and western regions have lower levels. There is a significant U-shaped relationship between environmental regulations and green innovation efficiency in the whole country and the eastern region; that is, regional green innovation efficiency decreases first and then increases. The environmental regulations in the central and western regions have no significant impact on green innovation efficiency. Relevant research conclusions have important policy implications for setting reasonable forms of environmental regulations to promote the improvement of green innovation efficiency, and then to build a green economic support belt in China.

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