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The Impact of Environmental Regulation on Technological Innovation of Resource-Based Industries

Author

Listed:
  • Weiqing Li

    (School of International Economics and Tourism Management, Zhejiang International Studies University, Hangzhou 310023, China)

  • Huaping Sun

    (Division of Low-carbon Economy and Environmental Regulation, Institute of Industrial Economics, Jiangsu University, Zhenjiang 212013, China)

  • Dang Khoa Tran

    (Institute of Business Research, University of Economics Ho Chi Minh City, Ho Chi Minh City 70000, Vietnam)

  • Farhad Taghizadeh-Hesary

    (Institute of Business Research, University of Economics Ho Chi Minh City, Ho Chi Minh City 70000, Vietnam
    Social Science Research Institute, Tokai University, Hiratsuka-shi, Kanagawa-ken 2591292, Japan)

Abstract

The development of the resource-based industry has obvious negative externality, and the government’s environmental regulation on the resource-based industry will force the technological innovation of the resource-based industry. This paper selects the panel data of 12 resource-based industries in China from 2003 to 2019 and tests the impact of environmental regulation on technological innovation of resource-based industries by constructing the econometric model. The results show that environmental regulation can promote the technological innovation of resource-based industries. Specifically, environmental regulation has no significant positive impact on the immediate product innovation of 12 resource-based industries in China, but it has a significant positive impact on the product innovation lagging behind one period and two periods. Environmental regulation has no significant impact on the process innovation of current period, but has a significant positive impact on the process innovation of lagging one period. Industrial scale has a significant positive impact on product innovation of resource-based industries. The input of scientific and technological activity personnel has a significant positive impact on the product innovation of current period, and in the long run, it promotes both product innovation and process innovation. On this basis, this paper puts forward the relevant measures and suggestions for the formulation of environmental regulation policies. The government departments should subdivide the resource-based industries, formulate environmental rules and policies by classification, encourage industrial enterprises to carry out technological innovation, reasonably implement fiscal and taxation policy tools and increase the investment in R&D funds, and improve the training mechanism of scientific and technological personnel.

Suggested Citation

  • Weiqing Li & Huaping Sun & Dang Khoa Tran & Farhad Taghizadeh-Hesary, 2020. "The Impact of Environmental Regulation on Technological Innovation of Resource-Based Industries," Sustainability, MDPI, vol. 12(17), pages 1-15, August.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:17:p:6837-:d:402879
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    Cited by:

    1. Xinyu Wang & Yuanze Chai & Wensen Wu & Adnan Khurshid, 2023. "The Empirical Analysis of Environmental Regulation’s Spatial Spillover Effects on Green Technology Innovation in China," IJERPH, MDPI, vol. 20(2), pages 1-14, January.
    2. Zhang, Wenyue & Sun, Chuanwang, 2024. "Do multinational enterprises’ overseas investment activities promote their green transition performance? Evidence from Chinese listed companies," Structural Change and Economic Dynamics, Elsevier, vol. 71(C), pages 594-608.
    3. Fan, Jianshuang & Liu, Dongtao & Zhou, Lin & Ding, Liang & Zhang, Junshen, 2025. "Environmental regulation, resource dependence, and innovation and entrepreneurship vitality of Chinese cites," Resources Policy, Elsevier, vol. 101(C).
    4. Yi Shi & Yan Li, 2022. "An Evolutionary Game Analysis on Green Technological Innovation of New Energy Enterprises under the Heterogeneous Environmental Regulation Perspective," Sustainability, MDPI, vol. 14(10), pages 1-26, May.
    5. 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.
    6. Yiming Hou & Guanwen Yin & Yanbin Chen, 2022. "Environmental Regulation, Financial Pressure and Industrial Ecological Efficiency of Resource-Based Cities in China: Spatiotemporal Characteristics and Impact Mechanism," IJERPH, MDPI, vol. 19(17), pages 1-18, September.
    7. Chao Zhou & Min Li & Yunting Zhao, 2025. "Driving effect of government environmental protection expenditure on green technology from the perspective of fiscal transparency," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 12(1), pages 1-11, December.

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