Impact of Environmental Regulation on Scientific and Technological Competitiveness of Resource-Based Cities in China-Based on Panel Data of 33 Resource-Based Cities.

Abstract

After the economy enters a “new normal” era in China, resource-based cities are under pressure in terms of transformation, upgrading and sustainable development. This paper uses the panel data of 33 resource-based cities from 2008 to 2018 to empirically analyze the impact of environmental regulation and innovation compensation on scientific and technological competitiveness. The results show that there is a positive U-shaped relation between environmental regulation and scientific and technological competitiveness. This means that when environmental regulations exceed a certain level, continuing to increase regulations will significantly enhance technological competitiveness, but most samples are still on the left side of the turning point. At the same time, the labor productivity and fiscal capacity of non-agricultural industries in the region may have a strong regulatory effect. In a region with higher labor productivity in non-agricultural industries or stronger local fiscal capacity, environmental regulation is more likely to reflect the attribute of “innovation compensation” and advance scientific and technological competitiveness. At this stage, we should optimize the trans-regional compensation mechanism for resource-rich regions, increase investment in pollution management and ecological protection and impose stricter admission standards on industrial projects. Besides, skilled laborers should be cultivated and innovation and entrepreneurship be supported to realize the green and sustainable development of resource-based cities in the new era.