Formal Environmental Regulation, Informal Environmental Regulation and Green Technology Innovation

  • Hanqing Hu , Jianling Li , Wenxian Tang , Yuanyuan Jin , Xiaodong Kang

Abstract

Serious environmental pollution, reduced resource carrying capacity and slow industrial
transformation have greatly constrained the sustainable financial and social evolution of China.
Due to the profit-driven nature of commerce and the externality of ecological environment, it
is difficult to solve the problem only by market means, and effective environmental regulations
are required for guidance. This study investigates the connection with environmental
regulations and green technological innovation efficiency through the threshold model. The
research shows that the formal environment shows an inverted U-shaped relationship with the
current and one-phase-lag green technological innovation efficiency, and shows a diminishing
effect with the two-phase-lag; the informal environmental regulations shows an increasing
effect with the current and one-phase-lag green technological innovation efficiency, and has
no threshold effect with the two-phase-lag; the cross terms of formal environmental
regulations and informal environmental regulations have an converse U-shaped relationship
with the current and one-phase-lag green technological innovation efficiency, and have no
threshold effect with the two-phase-lag. Especially putting forward is that from the
perspective of mechanism in the long run, the formal environmental regulation plays a more
important role in promoting the efficiency of green technology creation. This study provides
some ideas for promoting regional green innovation and improving environmental regulation.

Published
2020-06-30
How to Cite
Hanqing Hu , Jianling Li , Wenxian Tang , Yuanyuan Jin , Xiaodong Kang. (2020). Formal Environmental Regulation, Informal Environmental Regulation and Green Technology Innovation. Design Engineering, 583 - 596. https://doi.org/10.17762/de.vi.556
Section
Articles