scholarly journals Does Environmental Regulation Promote Environmental Innovation? An Empirical Study of Cities in China

2021 ◽  
Vol 19 (1) ◽  
pp. 139
Author(s):  
Dezhong Duan ◽  
Qifan Xia
Keyword(s):  
Empirical Study ◽  
Environmental Regulation ◽  
Spatial Correlation ◽  
Innovation Capability ◽  
Porter Hypothesis ◽  
Environmental Innovation ◽  
Environmental Pressure ◽  
Innovation Activities ◽  
Patent Applications

Promoting environmental innovation through environmental regulation is a key measure for cities to reduce environmental pressure; however, the role of environmental regulation in environmental innovation is controversial. This study used the number of environmental patent applications to measure urban environmental innovation and analyzed the role of urban environmental regulation on urban environmental innovation with the help of the spatial Durbin model (SDM). The results showed that: (1) From 2007 to 2017, the number of environmental patent applications in China has grown rapidly, and technologies related to buildings dominated the development of China’s environmental innovation. (2) Although the number of cities participating in environmental innovation was increasing, China’s environmental innovation activities were highly concentrated in a few cities (Beijing, Shenzhen, and Shanghai), showing significant spatial correlation and spatial agglomeration characteristics. (3) Urban environmental regulation had a positive U-shaped relationship with urban environmental innovation capability, which was consistent with what the Porter hypothesis advocates.

scholarly journals Innovation Capability Performance through Potential and Realized Absorptive Capacity: an Empirical Study in the West Java Mini Market

2021 ◽  
Vol 6 (1) ◽  
pp. 1-16
Author(s):  
Sri - Raharso
Keyword(s):  
Empirical Study ◽  
Multiple Regression ◽  
Absorptive Capacity ◽  
Innovation Capability ◽  
Research Model ◽  
The West ◽  
West Java ◽  
Independent Variables ◽  
Realized Absorptive Capacity

This study explores how potential and realized absorptive capacity affects innovation capability. This study aims to empirically examine the path relationship between potential absorptive capacity, realized absorptive capacity, and innovation capability in mini market in West Java, thus enhance our understanding of the mechanism between absorptive capacity and innovation capability. The authors have conducted a survey among employees with a valid response from 597 respondents. Multiple regression was used to assess the research model. The results provide evidence to show that potential and realized absorptive capacity are positively related to innovation capability, but in different proportions, and potential absorptive capacity affects positively to realize absorptive capacity. This study will contribute in an acceptable way to highlight the effects and role of both the potential absorptive capacity and the realized absorptive capacity in their role as independent variables and the results of this in innovation capability in turn as a dependent variable.Keywords: potential absorptive capacity realized absorptive capacity innovation capability

scholarly journals Could the Environmental Regulation Promote Green Innovation? Evidence From China

2021 ◽  
Author(s):  
Weiyong Zou ◽  
Yunjun Xiong
Keyword(s):  
Environmental Regulation ◽  
Positive Impact ◽  
Spillover Effect ◽  
Green Innovation ◽  
Coordinated Development ◽  
Innovation Activities ◽  
High Degree ◽  
The Relationship ◽  
D Investment

Abstract Could the environmental regulation promote green innovation? This is a very controversial issue. In view of the fact that the existing literature only studies the relationship between the two, lacks effective heterogeneity research, and pays less attention to the deeper analysis mechanism between the two. This study fills the gap. This paper selects the panel data of 285 prefecture level cities in China from 2000 to 2019 for empirical research. The results show that environmental regulation has a significant and continuous positive impact on green innovation.From the perspective of heterogeneity, we find that cities with higher level of green innovation are suitable to improve the intensity of environmental regulation; Cities with low level of green innovation can not formulate high-intensity environmental regulation policies. The intermediary mechanism shows that under the situation of stricter environmental regulations, producers will pay more attention to the promotion and accumulation of human capital, and provide strong intellectual support for green innovation activities. The adjustment mechanism shows that the cities with high degree of marketization and financial R&D investment are conducive to strengthening the promotion of environmental regulation on green innovation. On the contrary, it weakens the role of environmental regulation in promoting green innovation. In addition, this paper uses SYS-GMM model and selects appropriate instrumental variables to solve the endogeneity problem of the model. We find that after reducing the endogeneity of the model, improving the intensity of environmental regulation can still promote the level of green innovation. Using SDM decomposition model, we find that environmental regulation has spatial spillover effect on green innovation, and the formulation of environmental regulation strategy is conducive to the coordinated development of regional green innovation.

scholarly journals Analisis Peran Foreign Direct Investment (FDI) Sebagai Pemicu Keberhasilan Komersialisasi Inovasi Teknologi di Negara-Negara Asia

2019 ◽  
Vol 3 (1) ◽  
pp. 117-125
Author(s):  
Sarli Rahman ◽  
Andi Oh
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Sem Analysis ◽  
Equation Modeling ◽  
High Tech ◽  
Asian Countries ◽  
Technology Innovations ◽  
Innovation Activities ◽  
Patent Applications

Innovation activities are important things that must be done by a country, but unfortunately not all countries can do it, especially in the high-tech industry, because it requires a very large investment. This study aimed to analyze the role of FDI as a trigger for the successful commercialization of high technology innovations in Asian countries. Innovation is something that must be done by a country in order to compete in the international market, but most Asian countries have limitations in terms of capital, technology and skills to do it. One of solution that can be done is to attract as much investment from abroad through foreign direct investment (FDI). Of the 49 countries in Asia according to id.wikipedia.org, 21 countries countries have been selected as research samples. From the result of structual equation modeling (SEM) analysis founds that FDI was not able to trigger and boost innovation activities of countries in Asia, as measured through spending on R&D activities, number of patent applications, and research journals published internationally. The role of FDI in Asian countries is more to assist these countries in producing results from innovation activities. Keywords: R&D Expenditures, Number of Patent Applications, Number of journal publications, FDI, High-tech export High-tech export

scholarly journals The Impact of Environmental Regulation on Firm Export: Evidence from China’s Ecological Protection Red Line Policy?

2019 ◽  
Vol 11 (19) ◽  
pp. 5493 ◽  
Author(s):  
Zhai ◽  
Liu ◽  
Chan
Keyword(s):  
Environmental Regulation ◽  
Production Efficiency ◽  
Positive Impact ◽  
Holistic Approach ◽  
Policy Implications ◽  
Porter Hypothesis ◽  
Innovation Activities ◽  
Ecological Protection ◽  
The Impact ◽  
Red Line

China conducted a comprehensive overhaul of its environmental regulation as of April 2014. The regulation, which calls for a holistic approach to protect the environment, is also called the “Ecological Protection Red Line” (Red Line). It sets comprehensive standards for pollutants and mandates provinces to implement the regulations. The Porter and pollution haven hypotheses were tested for the impact of the Red Line on firm exports using a sample of Chinese A-share firms from 2011 to 2017. Our findings are consistent with the Porter hypothesis. The implementation of the Red Line has a positive impact on a firm’s exports. The findings are robust to alternative metrics of exports and different sub-samples. A firm’s innovation activities (in terms of research and development investments) and production efficiency were found to be the transmission channels, corroborating the underlying logic of the Porter hypothesis. Policy implications are discussed.

scholarly journals How Does Environmental Regulation Affect the Location of New Polluting Firms? Exploring the Agglomeration Threshold of Effective Environmental Regulation

2020 ◽  
Vol 17 (4) ◽  
pp. 1279
Author(s):  
Yinhao Wu ◽  
Changhong Miao ◽  
Jianming Miao ◽  
Yan Zhang
Keyword(s):  
Environmental Regulation ◽  
Fixed Effects ◽  
Chemical Plants ◽  
Porter Hypothesis ◽  
The Government ◽  
Threshold Regression Model ◽  
Polluting Firms ◽  
Panel Threshold Regression ◽  
Exclusion Effect

Some scholars have already proved the important role of agglomeration in studying how environmental regulation (ER) affects the location of polluting firms. However, further research is needed on both the mechanism and the empirical evidence. This paper reports the construction of a location database of new chemical plants in China’s Yangtze River Economic Belt (YREB), where a fixed-effects panel threshold regression model was used to explore the agglomeration threshold of effective ER. We found a single agglomeration threshold for the whole YREB region that represented the turning point of ER from excluding to attracting new chemical enterprises. Additionally, there were two agglomeration thresholds in the lower reaches. If agglomeration reached the lower threshold, the effect of ER changed from repulsion to nonsignificant attraction. Once above the upper threshold, the attraction effect became large and significant. The results for this region were consistent with the Porter hypothesis. Furthermore, there was a single agglomeration threshold in the middle reaches. When agglomeration level exceeded the threshold, the repellant effect of ER was no longer significant. In the upper reaches, we found no valid threshold and ER always exhibited a small and nonsignificant exclusion effect. The pollution haven hypothesis was more explanatory in the middle and upper reaches. In the end, some suggestions are provided to support the government to formulate differentiated environmental policies.

Impacts of Environmental Regulation on Sustainable Economic Growth

2018 ◽  
Vol 9 (9) ◽  
pp. 749-773
Author(s):  
Jonathan Fisher
Keyword(s):  
Economic Growth ◽  
Environmental Regulation ◽  
Technical Change ◽  
Best Practice ◽  
Environmental Regulations ◽  
The European Union ◽  
Porter Hypothesis ◽  
The United Kingdom ◽  
Environment Agency ◽  
Sustainable Economic Growth

There is considerable concern and debate about the economic impacts of environmental regulations. Jonathan Fisher, former Economics Manager at the Environment Agency in England and Wales, reviews the available evidence on this subject. Section 2 presents estimates of the costs and benefits of environmental regulations. Section 3 examines the impacts of environmental regulations on economic growth, innovation and technical change as well as impacts on competitiveness and any movement of businesses to less pollution havens. He questions call for greater certainty regarding future environmental regulations, whereas in fact there should be calls for less uncertainty. This section then suggests how this could be achieved. This section then finishes with an overview of the available evidence. This includes an examination of the Porter Hypothesis that environmental regulations can trigger greater innovation that may partially or more than fully offset the compliance costs. Section 4 then sets out principles for how better environmental regulation can improve its impacts on sustainable economic growth and illustrates how the European Union (EU) Water Framework Directive is a good example of the application of these principles in practice. Section 5 reviews current and recent political perspectives regarding developments in environmental regulations across the EU and shows how the United Kingdom (UK) has successfully positively managed to influence such developments so that EU environmental regulations now incorporate many of these principles to improve their impacts on economic growth. Section 5.1 then examines the implications of Brexit for UK environmental regulations. Finally, Section 6 sets out some best practice principles to improve the impacts of environmental regulation on sustainable economic growth, innovation and technical change.

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