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Impact of Green Finance and Environmental Regulations on the Green Innovation Efficiency in China

Author

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  • Tong Zhao

    (Business School, Nanjing Xiaozhuang University, Nanjing 211171, China)

  • Haihua Zhou

    (Business School, Nanjing Xiaozhuang University, Nanjing 211171, China
    Business School, Nanjing University, Nanjing 210012, China)

  • Jinde Jiang

    (Business School, Nanjing Xiaozhuang University, Nanjing 211171, China)

  • Wenyan Yan

    (Business School, Nanjing Xiaozhuang University, Nanjing 211171, China)

Abstract

Innovation is the first driving force for development, and green innovation efficiency (GIE) plays a very important role in regional sustainable development. Data from 31 provinces and cities in China from 2011 to 2020 were used to select the proportion of energy saving and environmental protection costs in GDP as the green financial value, and the proportion of industrial pollution control input in GDP as the environmental regulation index. Green innovation efficiency is measured from two aspects of input and output by DEA method, and carried out for 31 provinces and cities in three regions. Using the DEA-Malmquist index to measure regional green innovation efficiency, the results show that the green innovation efficiency in three regions basically presents an upward trend, but the upward trend of green innovation efficiency is different between the three regions. A Tobit regression model is constructed to explore the impact of green finance and environmental regulations on the green innovation efficiency in these three regions. Research indicates that environmental regulations, the proportion of output value of tertiary industry in GDP, industrial structure, and foreign direct investment have significant impacts on the green innovation efficiency in all regions. Green finance, industrial structure, and power consumption have a significant impact on the green innovation efficiency in eastern China. Industrial structure has a significant impact on green innovation efficiency in central China, while power consumption and industrial structure have a significant impact on green innovation efficiency in western China. Therefore, each region needs to improve the standard of environmental regulation innovation, and introduce and use foreign investment in a scientific and reasonable way so as to promote the improvement of industrial infrastructure.

Suggested Citation

  • Tong Zhao & Haihua Zhou & Jinde Jiang & Wenyan Yan, 2022. "Impact of Green Finance and Environmental Regulations on the Green Innovation Efficiency in China," Sustainability, MDPI, vol. 14(6), pages 1-17, March.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:6:p:3206-:d:767235
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    4. Zhou, Hao & Zheng, Mingbo, 2024. "Foreign direct investment and green innovation in China: An examination of quantile regression," Innovation and Green Development, Elsevier, vol. 3(3).
    5. Fengyan Wang & Ziyuan Sun & Hua Feng, 2022. "Can Media Attention Promote Green Innovation of Chinese Enterprises? Regulatory Effect of Environmental Regulation and Green Finance," Sustainability, MDPI, vol. 14(17), pages 1-25, September.
    6. Shiliang Hu & Wenhao Dong & Yongchun Huang, 2023. "Analysts’ Green Coverage and Corporate Green Innovation in China: The Moderating Effect of Corporate Environmental Information Disclosure," Sustainability, MDPI, vol. 15(7), pages 1-22, March.
    7. Wanfang Shen & Jianing Shi & Qinggang Meng & Xiaolan Chen & Yufei Liu & Ken Cheng & Wenbin Liu, 2022. "Influences of Environmental Regulations on Industrial Green Technology Innovation Efficiency in China," Sustainability, MDPI, vol. 14(8), pages 1-25, April.
    8. Mohammad Wasiq & Mustafa Kamal & Nazim Ali, 2023. "Factors Influencing Green Innovation Adoption and Its Impact on the Sustainability Performance of Small- and Medium-Sized Enterprises in Saudi Arabia," Sustainability, MDPI, vol. 15(3), pages 1-22, January.
    9. Bing Rong & Chentao Zhang & Shuhao Yang & Tongyi Liu & Chengjun Chu, 2023. "Spatial Characteristics and Influencing Factors of Green Development Progress Level of Private Enterprises in China: Based on Large Collection Surveys," Sustainability, MDPI, vol. 15(15), pages 1-21, July.
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    11. Shan Feng & Yawen Kong & Shuguang Liu & Hongwei Zhou, 2022. "Study on the Spatio-Temporal Evolution and Influential Factors of Green Innovation Efficiency in Urban Agglomerations of China," Sustainability, MDPI, vol. 15(1), pages 1-19, December.
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