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<p>Environmental regulation (ER) is a key driver of green technology innovation (GTI) for a low-carbon transition. The realization mechanism of GTI is examined under command and market-based ER based on a directed technical change model.The relationships between two types of ER and industrial GTI is analyzed with the SYS-GMM model. The threshold effects are also examined under different development levels and enterprise scales. In addition, the spatial spillover effects are explored. The study finds that: (1) The impact of ER on GTI depends on the relative benefits of green innovation and non-green innovation, shifting from inhibitory to promotive as GTI gains an advantage. (2) Environmental legislation (ERA1), administrative penalty (ERA2), and green technology subsidy (ERB2) show U-shaped relationships with GTI, while pollution charge(ERB1) exhibit an inverted U-shape. (3) With economic development, ERA1 and ERA2 shift from inhibiting to promoting GTI. ERB1 exhibit a intensifying promotional effect. ERB2’s effect is U-shaped. As enterprises expand, ERA1, ERA2 and ERB1 all shift from inhibiting to promoting and the promoting effects of ERA2 and ERB1 diminish with further scaling. The promoting effect of ERB2 strengthens initially and then weakens. (4) local ERA1 has a U-shaped impact on neighbor’s GTI, whereas local ERA2, ERB1 and ERB2 are U-shaped. This study puts forward policy recommendations: (1) Propose targeted ER for different GTI stages. (2) Design ER tools according to local economic level and enterprise sizes. (3) Regional synergistic governance should be enhanced.</p>

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The realization logic of industrial green technology inovation: from the perspectives of command and market-based environmental regulations

  • 期刊论文

  • 发表日期：

    2026年2月17日

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  • Jiahui Sun,
  • Xiaoyan Li

摘要

Environmental regulation (ER) is a key driver of green technology innovation (GTI) for a low-carbon transition. The realization mechanism of GTI is examined under command and market-based ER based on a directed technical change model.The relationships between two types of ER and industrial GTI is analyzed with the SYS-GMM model. The threshold effects are also examined under different development levels and enterprise scales. In addition, the spatial spillover effects are explored. The study finds that: (1) The impact of ER on GTI depends on the relative benefits of green innovation and non-green innovation, shifting from inhibitory to promotive as GTI gains an advantage. (2) Environmental legislation (ERA1), administrative penalty (ERA2), and green technology subsidy (ERB2) show U-shaped relationships with GTI, while pollution charge(ERB1) exhibit an inverted U-shape. (3) With economic development, ERA1 and ERA2 shift from inhibiting to promoting GTI. ERB1 exhibit a intensifying promotional effect. ERB2’s effect is U-shaped. As enterprises expand, ERA1, ERA2 and ERB1 all shift from inhibiting to promoting and the promoting effects of ERA2 and ERB1 diminish with further scaling. The promoting effect of ERB2 strengthens initially and then weakens. (4) local ERA1 has a U-shaped impact on neighbor’s GTI, whereas local ERA2, ERB1 and ERB2 are U-shaped. This study puts forward policy recommendations: (1) Propose targeted ER for different GTI stages. (2) Design ER tools according to local economic level and enterprise sizes. (3) Regional synergistic governance should be enhanced.