The Empirical Analysis of Environmental Regulation’s Spatial Spillover Effects on Green Technology Innovation in China

Abstract

Green technology innovation is one of the driving forces of industrial structure upgrading. This innovation is thought to be related to environmental regulation. The study uses panel data for 30 Chinese provinces and cities from 2009 to 2020 and presents a comprehensive research-based explanation of how environmental regulations impact green innovation. This study employs the spatial Durbin model to analyze the spillover effect of the region. The results show that the total impact of environmental regulations is 0.223%, of which the direct effect is 0.099%. This impact includes the effects of both formal and informal environmental regulation. It indicates that ecological regulations significantly enhance green technology innovation. Furthermore, the spatial spillover effect is significantly positive at the 1% level with a coefficient of 0.124. Such spillover effects represent a learning effect of regional environmental regulation. Based on the results, the study suggests a few policy measures based on the detailed outcomes.

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