Have environmental regulations promoted green technological innovation in cities? Evidence from China's green patents.

Abstract

Under the background of global response to climate crisis and environmental pollution, environmental regulation plays an increasingly important role in green technology innovation. This paper uses data from 280 Chinese cities from 2003 to 2019 to empirically answer the question whether environmental regulation can improve the level of urban green technology innovation. It is found that environmental regulation has a significant positive effect on green technology innovation. Under the heterogeneity of economic geographical region and resource-based city, environmental regulation has positive promoting effect on urban green technology innovation. Heterogeneity results also show that environmental regulation significantly promotes green technology innovation in central and resource-based cities, but does not significantly promote green technology innovation in eastern and western cities and non-resource-based cities. Further research shows that environmental regulation can promote the level of green technology innovation through the two transmission mechanisms of government technology input and foreign direct investment. For the Chinese local government which is implementing the policy of green economic transformation, the formulation of scientific regional environmental policy is beneficial to improve the level of green technology innovation, increase government technology input and optimize the foreign investment environment.