Dynamic relationship among environmental regulation, technological innovation and energy efficiency based on large scale provincial panel data in China

By Xiongfeng Pan, Bowei Ai, Changyu Li, Xianyou Pan, Yaobo Yan. Technological forecasting & social change, 2017

412 citations recorded by the source corpus.

Abstract Based on the large scale provincial panel data on in China from 2006 to 2015, this paper uses the directed acyclic graph (DAG) and structure vector autoregrression (SVAR) to study the internal dynamic relationship among the environmental regulation, technological innovation and energy efficiency. The results of the DAG analysis confirm the existence of three conduct paths among environmental regulation, technological innovation and energy efficiency. First, the market incentive environmental regulation contributes directly to energy efficiency. Second, the market incentive environmental regulation drives the energy efficiency through technological innovation. Third, the command control environmental regulation contributes directly to energy efficiency. The results of forecast error variance decomposition based on SVAR model corroborate the view that the impacts of the command control environmental regulation and market incentive environmental regulation on energy efficiency have no obvious difference in the short term. In addition, with the extension of the forecast period, the promotion effect of the command control environmental regulation on energy efficiency gradually decreases, whereas the promotion effect of the market incentive environmental regulation on energy efficiency gradually increases. Technological innovation has a significant role in promoting energy efficiency both in the short and the long term. The changes in technological innovation are affected not only by itself, but also by the market incentive environmental regulation, whereas the command control environmental regulation has no obvious impact on technological innovation.

Subfields: Economics and Econometrics, Environmental Engineering, Marketing

View Paper: https://www.semanticscholar.org/paper/92ede6b61b05105a2a5719a58fbc3b9d7e251e98

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Citations in the corpus

Determinants of CO2 emissions in European Union countries: Does environmental regulation reduce environmental pollution? (2020, background): “, 2018), proportion of industrial pollution control investment in industry value added (Pan et al., 2019), or coverage rate of urban green space (Lin and Zhu, 2019).”
Impact of technological innovation on energy efficiency in industry 4.0 era: Moderation of shadow economy in sustainable development (2021, background): “As opposed to Jin et al. (2018), Pan et al. (2019a) used patent applications as a measure of technological innovation and analyzed the nexus of environmental regulation, energy efficiency and technological innovation in 30 Chinese provinces.”
The impact of environmental regulations on urban Green innovation efficiency: The case of Xi'an (2020, background): “Indeed, many scholars agree that this incentive-oriented policy has a more obvious promoting effect than the mandatory regulatory (Pan et al., 2017).”