Exploring the impact of natural resource dependence on green technology innovation: New insights from China

Abstract

China's excessive reliance on natural resources has resulted in the dual challenges of sluggish economic growth and significant ecological damage. Addressing the resource curse and realizing sustainable economic development have emerged as paramount concerns in regional development. Exploring practical strategies to overcome these challenges and foster a more sustainable and resilient economic landscape is crucial. This study explores the impact of natural resource dependence (NRD) on green technology innovation (GTI) using Chinese provincial administrative regions data between 2011 and 2021. The finding demonstrates that natural resource dependence significantly impedes regional green technology innovation, especially in resource-based and central and western provinces. Furthermore, it investigates the effects of NRD on regional green innovation under different levels of government integrity and public environmental concern. The findings indicate that the inhibitory effect of NRD on regional green innovation is more pronounced with lower levels of government integrity. Conversely, public environmental concerns can partially alleviate the inhibitory effect of natural resource dependence on green technology innovation. Hence, promoting the development of new industries, actively constructing diversified economic structures, enhancing government integrity, and gradually improving the public participatory environmental regulatory system are essential measures to tackle the problem of resource dependency and promote the enhancement of regional green technology innovation.