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Air pollution and technological innovation in China: a two-way dynamic perspective

Author

Listed:
  • Shoufu Lin

    (Fujian Normal University)

  • Yanqing Xie

    (Fujian Normal University)

  • Zhaozhi Wang

    (Fujian Normal University)

  • Lingyu Zhong

    (Fujian Normal University)

  • Lian Xiao

    (Fujian Normal University)

  • Shanyong Wang

    (University of Science and Technology of China)

Abstract

This study establishes a simultaneous equations model to identify the bi-directional causal relationship between technological innovation and air pollution from a two-way dynamic endogenous perspective, and empirically through a three-stage least squares estimator using panel data from China’s 175 cities over 2008–2019. We find a significantly negative bi-directional relationship between technological innovation and air pollution, with the regression coefficients of −0.378 and −0.440. Economic development level, foreign direct investment, innovation fund and personnel inputs, and government financial support all positively, significantly affect innovation. Air pollution level produces significantly negative effects on invention, utility model, and design patents’ output with regression coefficients of −0.128, −0.070, and −0.117. It indicates that air pollution produces more obvious negative influences on invention patent output than non-invention patent output. An inverted-U-shaped relationship exists between emissions and economic development level. Foreign trade and secondary industry development (infrastructure level) increase (decrease) emissions. Decision-makers should consider the joint influences of all factors; invest to help firms reduce air pollution control and innovation costs; improve the environment, infrastructure, and policies to attract talents; enhance trade and investment liberalisation and facilitation; attract more foreign direct investment inflows; and improve secondary industry development’s quality.

Suggested Citation

  • Shoufu Lin & Yanqing Xie & Zhaozhi Wang & Lingyu Zhong & Lian Xiao & Shanyong Wang, 2025. "Air pollution and technological innovation in China: a two-way dynamic perspective," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 27(7), pages 15449-15469, July.
    • Handle: RePEc:spr:endesu:v:27:y:2025:i:7:d:10.1007_s10668-024-04535-3
    DOI: 10.1007/s10668-024-04535-3
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