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| Dual Nature of Environmental Regulation: Restraining or Promoting Technological Progress |
| Chen Lu |
| Research Institute of Central China Development, Wuhan University, Wuhan 430072, China |
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Abstract From the dynamic point of view, the potter hypothesis, environmental regulation can produce innovation compensation effect to promote enterprise technology progress and productivity improvement, not only can reduce or even make up the enterprise follow the cost. Different from previous studies, based on the potter hypothesis as the theory basis, the panel data of Wuhan city circle based on 2003-2014, using the Malmquist Luenberger index measures the impact of Wuhan city circle of environmental regulation on technology innovation by selecting the environmental regulation of three kinds of waste, and further the relation between environmental regulation and technological innovation fitting panel fixed effect model, the main conclusions are: ①Wuhan city circle of environmental regulation can effectively promote the economic development of Wuhan city circle of green and green technology progress, but the effect of different pollutants in different environmental regulation; ②to promote the role of environmental regulation within the circle of technological progress presents "u" type, which shows the follow the cost caused by environmental regulation in the short term restrains the innovation of enterprise, while forces enterprise to improve productivity in the long term by reducing pollutions through technological innovation.
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Received: 09 April 2017
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Corresponding Authors:
Chen Lu
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