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Environmental regulation, opening up to the outside world, and regional green industry development: Policy effects and optimization strategies

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  • Li, Yuantian
  • Xu, Haoyu
  • Li, Huiru
  • Xu, Yingming

Abstract

This research examines data collected from 31 Chinese regions spanning the years 2010 to 2022 to investigate the interplay between environmental policies, foreign investment openness, and the growth of green industries at the regional level. The findings reveal that environmental policies stimulate the advancement of green industries, while increased openness to foreign investment also fosters their development. Furthermore, openness serves as a mediator in the relationship between environmental policies and the expansion of green industries within regions, demonstrating heterogeneity across different areas. Additionally, industrial structure plays a moderating role in the relationship between openness and regional green industry development.

Suggested Citation

  • Li, Yuantian & Xu, Haoyu & Li, Huiru & Xu, Yingming, 2025. "Environmental regulation, opening up to the outside world, and regional green industry development: Policy effects and optimization strategies," Finance Research Letters, Elsevier, vol. 75(C).
    • Handle: RePEc:eee:finlet:v:75:y:2025:i:c:s1544612325001023
    DOI: 10.1016/j.frl.2025.106837
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