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Environmental Regulation, Technological Innovation, and Industrial Transformation: An Empirical Study Based on City Function in China

Author

Listed:
  • Jing Xu

    (School of Agriculture and Forestry Economics and Management, Lanzhou University of Finance and Economics, Lanzhou 730020, China
    Co-first author.)

  • Dong Chen

    (School of Agriculture and Forestry Economics and Management, Lanzhou University of Finance and Economics, Lanzhou 730020, China
    Co-first author.)

  • Rongrong Liu

    (School of Economics, Lanzhou University, Lanzhou 730000, China)

  • Maoxian Zhou

    (School of Agriculture and Forestry Economics and Management, Lanzhou University of Finance and Economics, Lanzhou 730020, China)

  • Yunxiao Kong

    (School of Economics, Lanzhou University of Finance and Economics, Lanzhou 730020, China)

Abstract

The Chinese economy has now transitioned from rapid expansion to high-quality growth. The issue of achieving synergy between environmental conservation and economic growth has become a serious concern. Based on the panel data of 120 prefecture-level cities in China from 2008 to 2017, we used the panel threshold regression model to investigate the influences of environmental regulation (ER) and technological innovation (TI) on urban industrial transformation. Further, we examined the threshold characteristics of four types of functional cities—resource-based, industry-oriented, comprehensive regional, and other types of cities. Our results show that ER and TI have varied effects on the industrial transformation of the four categories of functional cities. Both ER and TI have significant nonlinear threshold impacts on industrial transformation in resource-based cities. The inhibitory effect of ER on industrial structure rationalization decreases as the severity of ER increases. There is a shift from the promotion to the restriction of industrial structure rationalization due to TI increase. In contrast, TI strengthens the optimization of industrial structure. The promotion effects of ER and TI on industrial structure optimization improve as the former and latter increase in comprehensive regional cities. The influence of TI on the industrial transformation of industry-oriented cities is consistent with its impact on resource-based cities. These findings provide theoretical guidance and inspiration for urban industrial transformation in response to ER and TI based on their functional roles.

Suggested Citation

  • Jing Xu & Dong Chen & Rongrong Liu & Maoxian Zhou & Yunxiao Kong, 2021. "Environmental Regulation, Technological Innovation, and Industrial Transformation: An Empirical Study Based on City Function in China," Sustainability, MDPI, vol. 13(22), pages 1-23, November.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:22:p:12512-:d:677886
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    4. Jianshi Wang & Yu Cheng & Chengxin Wang, 2022. "Environmental Regulation, Scientific and Technological Innovation, and Industrial Structure Upgrading in the Yellow River Basin, China," IJERPH, MDPI, vol. 19(24), pages 1-17, December.

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