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Threshold Effect of Environmental Regulation and Green Innovation Efficiency: From the Perspective of Chinese Fiscal Decentralization and Environmental Protection Inputs

Author

Listed:
  • Liang Liu

    (School of Economics and Management, Southwest University of Science and Technology, Mianyang 621010, China
    These authors contributed equally to this work and should be considered co-first authors.)

  • Yuting Zhao

    (School of Economics and Management, Southwest University of Science and Technology, Mianyang 621010, China
    These authors contributed equally to this work and should be considered co-first authors.)

  • Xiujuan Gong

    (School of Economics and Management, Southwest University of Science and Technology, Mianyang 621010, China)

  • Shu Liu

    (School of Economics and Management, Southwest University of Science and Technology, Mianyang 621010, China)

  • Mengyue Li

    (School of Economics and Management, Southwest University of Science and Technology, Mianyang 621010, China)

  • Yirui Yang

    (School of Economics and Management, Southwest University of Science and Technology, Mianyang 621010, China)

  • Pan Jiang

    (School of Economics and Management, Southwest University of Science and Technology, Mianyang 621010, China
    School of Environment and Resource, Southwest University of Science and Technology, Mianyang 621010, China)

Abstract

In the context of China’s 14th Five-Year Plan and 2035 visionary goals of national economic and social development, to achieve the national dual carbon goals, an innovation-driven green development strategy must be implemented, and the relationship between environmental regulation and green innovation efficiency must be clarified. Based on the DEA-SBM model, in this study, we measured the green innovation efficiency of 30 provinces and cities in China from 2011 to 2020 by introducing environmental regulation as the core explanatory variable, and two threshold variables, environmental protection input and fiscal decentralization, to empirically analyze the threshold effect of environmental regulation on green innovation efficiency. We found that: (1) The green innovation efficiency of 30 provinces and municipalities in China is spatially distributed as strong in the east and weak in the west. (2) A double-threshold effect exists with environmental protection input as the threshold variable. Environmental regulation showed an inverted N-shaped relationship of first inhibiting, then promoting, and finally inhibiting green innovation efficiency. (3) A double-threshold effect exists with fiscal decentralization as the threshold variable. Environmental regulation showed an inverted N-shaped relationship of inhibiting, promoting, and then inhibiting green innovation efficiency. The study results provide theoretical guidance and practical reference for China to achieve the dual carbon goal.

Suggested Citation

  • Liang Liu & Yuting Zhao & Xiujuan Gong & Shu Liu & Mengyue Li & Yirui Yang & Pan Jiang, 2023. "Threshold Effect of Environmental Regulation and Green Innovation Efficiency: From the Perspective of Chinese Fiscal Decentralization and Environmental Protection Inputs," IJERPH, MDPI, vol. 20(5), pages 1-17, February.
    • Handle: RePEc:gam:jijerp:v:20:y:2023:i:5:p:3905-:d:1076877
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    References listed on IDEAS

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    6. Xingle Long & Chuanwang Sun & Chao Wu & Bin Chen & Kofi Agyenim Boateng, 2020. "Green innovation efficiency across China’s 30 provinces: estimate, comparison, and convergence," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 25(7), pages 1243-1260, October.
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    1. Quintás, María A. & Martínez-Senra, Ana I. & Otero-Giráldez, M.S., 2024. "Non-Linear effects of diesel taxes on environmental innovation: Room for higher taxes," Energy Policy, Elsevier, vol. 195(C).
    2. Melike Bildirici & Sema Yılmaz Genç & Özgür Ömer Ersin, 2023. "Effects of Fiscal and Monetary Policies, Energy Consumption and Economic Growth on CO 2 Emissions in the Turkish Economy: Nonlinear Bootstrapping NARDL and Nonlinear Causality Methods," Sustainability, MDPI, vol. 15(13), pages 1-23, July.

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