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| Can Environmental Regulation Tools Improve the Quantity and Quality of Enterprise Green Technology Innovation under the Condition of Digital Economy? |
| Hua Shuming,Li Jingze |
| (School of Economics and Management,Xinjiang University, Urumqi 830046, China) |
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Abstract As China endeavors to achieve a comprehensive green transition，it is now actively exploring the path of coordinated development of economy and environment, in which innovation is constantly emphasized as the driving force for leading development and as an important impetus for achieving coordinated development of economy and environment. The green technology innovation is the double benefit of both technology progress and environment protection, and it is an effective means to encourage the green innovation activities of enterprises and realize the win-win of economic development and environment protection. At the same time, with the continuous increase of innovation incentives, China's innovation quantity has ranked first in the world, but in contrast the quality of innovation in China lags behind, and the core technology bottlenecks seriously threaten the economic security. Therefore China is in urgent need of transformation to an innovation power. In this context, it is of great practical significance for China to explore how to improve the quantity and quality of green innovation.#br#In the market economy, it is difficult for enterprises to carry out green innovation input spontaneously based on their own interests, hence it has become a hot topic of how to encourage enterprise green innovation in the academic field. Existing studies have found that environmental regulations have important impacts on enterprise innovation, and environmental regulation policies are vital for government to stimulate enterprise innovation, but there are significant differences among different policy instruments, the innovation incentive mechanism of environmental regulation tools is different and influenced by the external conditions. So how should the government choose the environmental regulation tools toachieve appropriate supervision intensity, so as to achieve positive incentives for green innovation? At the same time, with the advent of the digital economy, the digital economy has reshaped the economic structure and changed the innovation paradigm by virtue of its high permeability, intensive knowledge creation and extensive empowerment. The existing literature finds that the development of the digital economy promotes technological innovation, and studies its indirect impact on innovation based on the enabling role of the digital economy and changes in market conditions. Then how will the incentive mechanism for innovation of various environmental regulatory instruments change?#br#To answer this question, this study uses the panel data of A-share listed companies from 2013 to 2019 as samples, and employs the fixed panel model and the panel threshold model, to empirically analyze the direct impact of three environmental regulatory tools and the digital economy on the quality and quantity of green technology innovation, and the incentive effect of different regulatory tools on green innovation in the digital economy. The innovation incentive effect of regulatory instruments is compared based on the different scale of enterprises.#br#The results confirm that market-based regulation promotes the quality and quantity of green technology innovation of enterprises, while order-based regulation promotes the quantity of green technology innovation, but it has no significant effect on quality, while public participation-based regulation has no significant effect on the quality and quantity of green technology innovation. It's also found that the digital economy can promote the quality and quantity of green technology innovation of enterprises, the incentive effect of market incentive regulation on the quality and quantity of green technology innovation, and the incentive effect of imperative regulation and public participation regulation on the quantity of green innovation; the incentive effect of restraining public participation regulation on green innovation quality is the same as that of dictating regulation. The heterogeneity test results show that the incentive effect of environmental regulation tools on green innovation is various for enterprises of different sizes, and large enterprises have innovation strategy rigidity.#br#This study has the following highlights. First, different from the existing research on green technology innovation, this paper starts from the quality and quantity dimensions of green innovation to make a deep analysis of environmental regulation tools and the digital economy on its direct impact. Secondly, it takes the digital economy as the external condition and brings it into the impact mechanism of environmental regulation tools on enterprise green innovation. Finally, compared with most existing literature which uses macro-data to analyze heterogeneity from the geographical point of view, this paper uses the micro-listed enterprise data to explore the heterogeneity of different enterprise sizes and puts forward more targeted recommendations.#br#
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Received: 20 December 2021
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