Abstract
This paper empirically studies the environmental regulation, financial resource allocation, and regional green technology innovation efficiency by using provincial panel data from 2005 to 2019. The results show that the cost‐input environmental regulation is negatively correlated with the efficiency of regional green technology innovation, while the government‐subsidized environmental regulation is positively correlated with the efficiency of regional green technology innovation. The mechanism test shows that the cost‐input environmental regulation reduces the efficiency of green technology innovation by restraining the allocation of financial resources, while the government‐subsidized environmental regulation lifts the efficiency of green technology innovation by improving the allocation of financial resources. As far as different regions are concerned, the cost‐input environmental regulation has a significant inhibitory effect on the eastern and central regions, while the government‐subsidized environmental regulation has a significant improvement effect on the central and western regions.
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