The Influence and Mechanism Analysis of Environmental Regulation on Green Technology Innovation of Enterprises

Abstract

By collecting the micro data of China's A-share listed enterprises, this paper studies the impact of environmental regulation on the green technology innovation of heterogeneous enterprises based on the perspective of "Porter hypothesis". It is found that environmental regulation can effectively promote the green technology innovation level of enterprises. And the conclusion remains robust after controlling for endogeneity, replacing the explained variables, and changing the time series. In the heterogeneity analysis, due to the differences in enterprise strength and social responsibility between state-owned enterprises and non-state-owned enterprises, environmental regulation has different effects on the green technology innovation effect of enterprises with different features. Due to the good economic foundation and resource endowment in the eastern region and the western region, the environmental regulation has a more obvious effect on the green technology innovation of enterprises in this region. The central region does not have these advantages, the effect is not significant. In the mechanism analysis, the cost mechanism and the compensation of innovation mechanism proposed by the theoretical analysis are verified.