Research on the environmental regulations for green technology innovation and the moderating role of political connection

Abstract

Under the condition of severe environmental pollution and the great pressure of government regulation, the performance of Chinese enterprises in green technology innovation deserves attention. Previous studies pointed out that political connection could provide scarce resources for enterprises to enhance their competitiveness, so as to promoted their green technology innovation ability. Based on the data of 260 Chinese listed enterprises from 2016 to 2020, this study illuminates the relationship between environmental regulation and green technology innovation, and further investigates the moderating role of political connection. The results show that environmental regulation significantly promoted green technology innovation of Chinese enterprises. Besides, the positive effect was strengthened year by year. Political connection played a crucial role in stimulating green technology innovation and negatively moderated the positive effect of environmental regulation on green technology innovation. The research conclusions offer a fresh ideological line for using the relationship between Chinese government and enterprises to influence enterprises’ green technology innovation under the concept of green economic development.