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Environmental regulation, technological innovation, and industrial structure upgrading

Author

Listed:
  • Kedong Yin
  • Yuqing Miao
  • Chong Huang

Abstract

The conflict between rapid economic development, resource mismatch, and ecological damage is growing more severe. Industrial structure upgrading, as a bridge between economic activity and the ecological environment, is a crucial strategy for solving ecological and environmental problems. Based on the mediating effect and threshold models, this study selected 30 provincial panel data points in China from 2000 to 2020 to study the impact of environmental regulation and technological innovation on industrial structure upgrading. According to the findings, environmental regulation has a “U†shaped impact on industrial upgrading and passes the three threshold tests, with technological innovation playing a partially positive mediating role. There is regional heterogeneity in the impact of environmental regulation on industrial upgrading, with a “U†shaped impact on the eastern regions; there is inhibited industrial upscaling in the central and western areas. Foreign trade hinders industrial development in the eastern region but promotes rapid development and achieves structural adjustment in the central and western areas. The expansion of fixed asset investment hinders industrial restructuring. Government regulation can encourage industrial structure upgrading in all regions. We propose policy recommendations based on China’s current situation. The development of technological innovation should be promoted, and environmental rules should be differentiated according to local conditions. This study has a certain guiding significance and reference value for balancing environmental governance and economic development, effectively implementing an innovation-driven development strategy, and formulating China's regional development strategy.

Suggested Citation

  • Kedong Yin & Yuqing Miao & Chong Huang, 2024. "Environmental regulation, technological innovation, and industrial structure upgrading," Energy & Environment, , vol. 35(1), pages 207-227, February.
    • Handle: RePEc:sae:engenv:v:35:y:2024:i:1:p:207-227
    DOI: 10.1177/0958305X221125645
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    Cited by:

    1. Chenchen Song & Zhiling Guo & Xiaoyue Ma & Jijiang He & Zhengguang Liu, 2025. "Evaluating the Role of Next-Generation Productive Forces in Mitigating Carbon Lock-In: Evidence from Regional Disparities in China," Sustainability, MDPI, vol. 17(9), pages 1-29, May.
    2. Juntao Du & Ziyi Zhang & Xueli Chen & Huihui Ding & Ning Zhang & Malin Song, 2024. "Revitalizing industrial structure: Unleashing the potential of energy technology innovation," Journal of Evolutionary Economics, Springer, vol. 34(4), pages 783-809, December.
    3. Zhu, Tianqi & Zhao, Lijuan & Zhao, Lu & Kang, Xiaohong, 2025. "Impact of financial decentralisation on industrial structure upgrading: From the coordination perspective of fiscal decentralisation," International Review of Financial Analysis, Elsevier, vol. 104(PA).
    4. Shaodong Shi & Xinbo Wang, 2024. "Analysis of human capital effects introducing Bayesian quantile regression in the process of industrial structural upgrading," PLOS ONE, Public Library of Science, vol. 19(7), pages 1-34, July.
    5. Sun, Xiaojun & Fan, Yee Van & Lei, Yalin & Si, Chunyan & Cao, Zimin & Varbanov, Petar Sabev, 2025. "Mechanism of environmental regulation on energy productivity, energy structure, and carbon emissions: The role of directed technological progress," Energy, Elsevier, vol. 328(C).
    6. Liang, Ye & Zhou, Chuanyu & Wu, Yunfeng, 2025. "The emerging driving force of green transformation in resource-based cities: Does the digital economy work?," Economic Analysis and Policy, Elsevier, vol. 86(C), pages 1858-1880.
    7. Huixin Zhou & Ziqing Tang & Yumeng Luo & Dingyang Zhou & Guanghui Jiang, 2025. "From “Policy-Driven” to “Park Clustering”: Evolution and Attribution of Location Selection for Pollution-Intensive Industries in the Beijing–Tianjin–Hebei Urban Agglomeration," Land, MDPI, vol. 14(11), pages 1-19, October.
    8. Haonan Chen & Xiaoning Cui & Yu Shi & Zhi Li & Yali Liu, 2024. "Impact of Policy Intensity on Carbon Emission Reductions: Based on the Perspective of China’s Low-Carbon Policy," Sustainability, MDPI, vol. 16(18), pages 1-20, September.
    9. Ke Zhao & Chao Wu & Jinquan Liu & Yongfu Liu, 2024. "Green Finance, Green Technology Innovation and the Upgrading of China’s Industrial Structure: A Study from the Perspective of Heterogeneous Environmental Regulation," Sustainability, MDPI, vol. 16(11), pages 1-17, May.
    10. Zhang, Xiufeng & Yan, Tong & Zhang, Shengxin & Zhang, Zhenhua & Feng, Yanchao, 2025. "Assessing the synergy reduction effects of the renewable energy policies on environmental pollution and carbon emissions in China," International Review of Financial Analysis, Elsevier, vol. 105(C).
    11. Zihan Hu & Min Wu & Dan Yang & Tao Luo & Yihao Tian, 2024. "How Resource-Exhausted Cities Get Out of the Innovation Bottom? Evidence from China," Land, MDPI, vol. 13(8), pages 1-22, July.
    12. Weiqi Hua & Chenglan Liu & Chunzhong Li, 2024. "Environmental Regulation, Government-Business Relations, and Corporate Green Innovation: Evidence from Low-Carbon City Pilot Policy," Sustainability, MDPI, vol. 16(22), pages 1-23, November.
    13. Zhao, Kai & Gao, Yu & Liu, Xiaoman, 2025. "The impact of environmental regulation on industrial structure upgrading: A case study of low carbon city pilot policy," Energy Policy, Elsevier, vol. 197(C).
    14. Xuejia Zheng & Lei Zhuang, 2025. "The Impact of Environmental Protection Tax on Green Behaviors and ESG Performance of Industrial Enterprises," Sustainability, MDPI, vol. 17(19), pages 1-18, September.

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