TITLE:
The Impact of Different Environmental Regulatory Tools on Technological Innovation in China’s Manufacturing Industry
AUTHORS:
Jun Zhou, Yadi Wang
KEYWORDS:
China’s Manufacturing Industry, Environmental Regulation, Combination of Environmental Regulation, Technological Innovation, Threshold Effect
JOURNAL NAME:
iBusiness,
Vol.14 No.4,
December
29,
2022
ABSTRACT: There are different types of environmental regulation tools, such as
command and control, economic incentive and public participation, and the
combination of environmental regulation tools can be divided into command and
control and economic incentive, economic incentive and public participation,
command and control and public participation and so on. Using the panel data of
China’s listed manufacturing enterprises from 2010 to 2018, this paper
empirically analyzes the impact of three combinations of environmental
regulation tools, namely command and control type and economic incentive type,
economic incentive type and public participation type, command and control type
and public participation type, on the technological innovation of China’s
manufacturing enterprises. The results show that the combination of command and
control type and economic incentive type, economic incentive type and public
participation type can promote the technological innovation of manufacturing
enterprises, while the combination of command and control type and public
participation type is not conducive to the technological innovation of China’s
manufacturing enterprises. Regression is conducted with economic incentives of
Environmental regulation as the threshold variable, found the command control
type and the public participation in environmental
regulation on manufacturing technology innovation is double threshold effect,
and with the increase of the economic strength of the motivational tool,
command control type and the public participating the effect of environmental
regulation tools are also enhanced. The research in this paper shows that when
environmental regulation of China’s manufacturing enterprises is carried out,
the combination of command and control type and economic incentive type and
economic incentive type and public participation type can play a role in
promoting technological innovation in China’s manufacturing industry.