Does Environmental Decentralization Improve Regional Green Innovation? Evidence from China
Abstract Green innovation is critical for sustainable development. The reform of environmental management system plays an important role in improving environmental pollution and technology progress. Working from a heterogeneous perspective, this study investigates the effects of different types of environmental decentralization on regional green innovation using statistical data from 30 provinces in China over the period of 2000–2015. The results show that environmental decentralization (ED) promotes regional green innovation. Furthermore, according to different environmental management of levels and affairs, we divide environmental decentralization into provincial-level environmental decentralization (PED), municipal-level environmental decentralization (MED), and county-level environmental decentralization (CED); environmental administrative decentralization (EAD), environmental monitoring decentralization (EMD), and environmental supervision decentralization (ESD), respectively. There is also evidence suggesting that different types of environmental decentralization have varied effects on regional green innovation. These findings set out in this study are robust when different methods are employed. A further investigation indicates that the effects of different types of environmental decentralization on green innovation apparently differ across Chinese different regions. Some policy recommendations will help policymakers to determine more effective environmental decentralization.