Opening the black box: the impacts of environmental regulations on technological innovation
technology investment efficiency
technology transformation efficiency
Subject Categories::H223 Environmental Impact Assessment
MetadataShow full item record
AbstractWhether environmental regulations (ERs) can stimulate technological innovation (TI) is the key for realizing the win-win strategy between economic development and environmental protection. This study seeks to analyze the impacts of ERs on TI. Though previous literature has highlighted that the black box of TI can be decomposed into technology investment and technology transformation, further empirical studies on such a decomposition has largely been ignored. Moreover, a detailed discussion of the links between ER and the decomposed components of TI has not been conducted in developing countries such as China. Our study attempts to address these research gaps by (i) decomposing TI using a novel DEA procedure and to further analyze the impacts of ERs on the decomposed components of TI, and (ii) apply this novel methodology to Chinese context. Accordingly, this study is conducted in two stages. First, a novel application of the slack-based Network DEA model is developed to uncover the black box of TI using Chinese data; to estimate the overall efficiency of technological innovation (TIE) and decompose it into the efficiency of technology investment (TVE) and the efficiency of technology transformation (TTE). Second, a random effect Tobit model is applied to (i) investigate both the linear and non-linear impacts of ERs on TIE in all sectors, and (ii) examine whether the impacts of ERs on TVE and TTE in different sub-processes are heterogeneous or not. Our results have brought out the benefits of decomposing TI; while technology transformation in China closely follows the trend of TI, the trend of technology investment is somewhat different. The estimation results further indicate that the impacts of ERs on TIE are non-linear. Besides, ERs have heterogeneous impacts on the decomposed components of TI. The impacts of ERs on TVE are non-linear, whereas the impacts of ERs on TTE become insignificant.
CitationLi M, Zhang J, Ramanathan R, Li R (2020) 'Opening the black box: the impacts of environmental regulations on technological innovation', International Journal of Environmental Research and Public Health, 17 (12), pp.4365.
Sponsors“This research was funded by Philosophy and Social Science Foundation of Heilongjiang Province, grant number 18JYD389 and grant number 19GLC16.”
The following license files are associated with this item:
- Creative Commons
Except where otherwise noted, this item's license is described as Green - can archive pre-print and post-print or publisher's version/PDF
- Exploring the impact of technological innovation, environmental regulations and urbanization on ecological efficiency of China in the context of COP21.
- Authors: Yasmeen H, Tan Q, Zameer H, Tan J, Nawaz K
- Issue date: 2020 Aug 13
- The impact of differentiated technological innovation efficiencies of industrial enterprises on the local emissions of environmental pollutants in Anhui province, China, from 2012 to 2016.
- Authors: Zhang K, Jiang W, Zhang S, Xu Y, Liu W
- Issue date: 2019 Sep
- Regional technology gap and innovation efficiency trap in Chinese pharmaceutical manufacturing industry.
- Authors: Lai H, Shi H, Zhou Y
- Issue date: 2020
- Research on the impact of environmental regulation on enterprise technology innovation-an empirical analysis based on Chinese provincial panel data.
- Authors: Song Y, Yang T, Zhang M
- Issue date: 2019 Jul
- Is technological innovation the effective way to achieve the "double dividend" of environmental protection and industrial upgrading?
- Authors: Wang G, Liu S
- Issue date: 2020 May