How does green technology innovation influence industrial structure? Evidence of heterogeneous environmental regulation effects

Green technology innovation (GTI) and environmental regulation (ER) hold the key to promoting the transformation of industrial structure. Based on the regional panel data of China, this is the first study to explore the impact of GTI on the optimization of industrial structure (OIS) and rationalization of industrial structure (RIS) under various ERs. The results suggest that the influence of GTI on OIS and RIS features both heterogeneous environmental regulation effects and regional heterogeneity. Furthermore, command-controlled environmental regulation (CER) has a significant inhibitory effect on OIS. The threshold effects of ERs on OIS and RIS turn out to be significantly different when the panel threshold models are introduced, which also shows heterogeneity. Specifically, there are double and single threshold effects of MER and public participation environmental regulation (PER) on OIS, respectively. In comparison, there are single and double threshold effects of GTI on RIS under CER and PER, respectively. The results indicate that OIS and RIS are significantly correlated with GTI and the type and intensity of ERs. Therefore, it is necessary to strengthen GTI to promote regional coordination and cooperation for green industrial transformation.

Automated summary

Green technology innovation (GTI) and environmental regulation (ER) play a key role in promoting industrial structure transformation. This study uses regional panel data from China to explore the impact of GTI on industrial structure optimization (OIS) and rationalization (RIS) under different ERs. The results show that GTI has heterogeneous effects on OIS and RIS, influenced by environmental regulation and regional characteristics. Additionally, command-controlled environmental regulation (CER) has a significant inhibitory effect on OIS. The study also finds significant threshold effects of ERs on OIS and RIS, indicating heterogeneity. Strengthening GTI is necessary to promote regional coordination and cooperation for green industrial transformation.