The Impact of Environmental Regulation on Green Energy Technology Innovation—Evidence from China

Abstract

Green energy technology innovation (GETI) is a crucial path to achieve sustainable development. However, few studies have examined the determinants of GETI, especially from the perspective of environmental regulation. To fill this gap, this study investigates the impact of environmental regulation on GETI using the panel data of 30 provinces in Mainland China from 2001 to 2018. We first measure GETI by the latest IPC codes and patent data, and then adopt a dynamic spatial Durbin model (DSDM) to examine the relationship between environmental regulation and GETI. The main conclusions are summarized as follows: (1) There is a significant inverted U-shaped relationship between environmental regulation and GETI; (2) heterogeneity analysis shows that the inverted U-shaped correlation not only exists between environmental regulations and different types of GETI, but also exists between environmental regulations and GETI in different regions. Moreover, the results also show that the spatial spillover effect and path-dependent effect exist in all cases. The findings can provide reference for policymakers to formulate more precise environmental policies. That is, environmental policies in a province should be formulated based on its position on the inverted U-shaped curve. More specifically, when it is on the left side of the inflection point, it is reasonable to strengthen environmental policies, and when it is on the right side of the inflection point, appropriate relaxation of environmental policies should be considered.

The impact of nuclear energy consumption and green technological innovation on the sustainable environment in the USA. The role of trade openness

“…These results significantly contribute to the existing literature. The study aligns with previous findings that highlight the positive impact of GTI on environmental quality, supporting the notion that technological advancements are crucial for reducing emissions and promoting sustainability [22][23][24]. Additionally, identifying bidirectional causality between NE and CE reinforces the findings of Majeed et al [55] and Murshed et al [13], providing further evidence of the interdependent relationship between nuclear energy use and environmental outcomes.…”

“…Moreover, Hart and Dowell [21] argue that GTI can give companies a competitive edge while benefiting the environment. Recent studies further support that GTI improves environmental quality [22][23][24]. In other words, GTI helps increase production capacities and reduce environmental degradation [17,[25][26][27][28][29].…”

Translating Organizational Change into Entrepreneurial Identity—A Study of Energy Transition in a Large State-Owned Enterprise

“…Energy transition towards sustainable and clean sources of energy is of critical importance for global welfare (Markard et al 2004;Marques et al 2020;Sala et al 2023). Most studies on energy transition focus on the role of policies driving energy transition at country and international levels (Rana et al 2020;Maris and Flouros 2021;Cheng et al 2022) and on the global concerns over the negative impact of fossil fuels on the environment (Apergis and Payne 2011;Imasiku et al 2019;Estévez et al 2021). Other studies have explored the broader impacts on the green innovation (Castellacci and Lie 2017;Takalo et al 2021) of finance (Zhou et al 2022;Hou et al 2022;Yang et al 2022), foreign direct investment (Luo et al 2021;Xu and Li 2021), and knowledge sharing (Bao et al 2022;Liao and Li 2022).…”

Exploring Financial Agglomeration and the Impact of Environmental Regulation on the Efficiency of the Green Economy: Fresh Evidence from 30 Regions in China

“…Improving environmental regulations has become a consensus to prevent and control environmental pollution. There are two main views: the "compliance cost theory" and the "innovation compensation theory" [14]. The "compliance cost theory" argues that environmental regulations increase emissions costs, which reduce corporate profits, thus weakening corporate competitiveness.…”