Examining Whether Government Environmental Regulation Promotes Green Innovation Efficiency-Evidence from China's Yangtze River Economic Belt

Based on the panel data of 11 provinces and cities in the Yangtze River Economic Belt from 2005 to 2018, this paper uses the SBM-DEA efficiency model with undesired output to measure the green innovation efficiency of the Yangtze River Economic Belt. The panel Tobit empirical analysis model was used to quantitatively analyze the impact of three different forms of government environmental regulations on the efficiency of green innovation. The research results show that the government's mandatory environmental regulations and government financial subsidies for green innovation technology are two regulatory methods that positively promote the efficiency of regional green innovation, but government investment in environmental governance has a negative impact on the efficiency of regional green innovation. Then the study found that this negative impact has a significant inflection point effect: when it exceeds a certain threshold, the negative impact turns into a positive effect. At the same time, the impact of environmental regulations on the efficiency of green innovation has significant regional heterogeneity, and the three environmental regulations have a greater impact on downstream provinces and cities.

Automated summary

This study measures the green innovation efficiency of the Yangtze River Economic Belt and analyzes the impact of government environmental regulations on this efficiency. The results show that mandatory environmental regulations and financial subsidies for green innovation positively promote regional green innovation efficiency, while government investment in environmental governance has a negative impact. Moreover, this negative impact turns into a positive effect when it exceeds a certain threshold. There is also significant regional heterogeneity in the impact of environmental regulations on green innovation efficiency, with greater impacts on downstream provinces and cities.