The Effects of Environmental Regulation on Green Technology Innovation——Evidence of the Porter Effect in China
- GUO Jin
- Nanjing Normal University, 210023.
In view of the various paths between environmental regulation and regional pollution control like changing polluting industries' location or enterprises' investment area, we studied the relationship between environmental regulation and green technology innovation directly in this paper based on interprovincial panel data. The results indicate that sewage charge and fiscal expenditure on environmental protection are more efficient with respect to environment administrative punishment and issuing local laws. This suggests that the time of environmental regulation is not the key factor in promoting green technology innovation, and such environmental regulation tools as finance, tax and fee, which based on market mechanism, are more suitable for Chinese conditions. The mediation effect test indicates that sewage charge and fiscal expenditure on environmental protection have promoted green technology innovation by forcing and stimulating enterprises' R&D intensity. In addition, their effects have experienced threshold effects growing from weak to strong and from insignificant to significant. In addition, severe environment administrative punishment has generated a blocking effect and issuing local regulations shows no effect in promoting green technology innovation. Finally, we put forward our suggestions like building a market-oriented environmental regulation system, emphasizing toplayer design's implementation and properly intensifying environmental regulation.
JEL：C52, Q55, Q56
- Environmental Regulation, Green Technology Innovation, Mediation Effect, Threshold Effect