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Environmental Regulation and Spatial Spillover Effect of Green Technology Innovation: An Empirical Study on the Spatial Durbin Model

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  • Xin Zhang

    (School of Economics and Finance, South China University of Technology, Guangzhou 510641, China)

  • Feng Xu

    (School of Economics and Finance, South China University of Technology, Guangzhou 510641, China)

Abstract

This study empirically examined the spatial spillover effect of various environmental regulations on green technology innovation using panel data from 284 cities at the prefecture level in China between 2007 and 2019. A geographical–economic spatial weight matrix was constructed, and the spatial Durbin model was employed to identify the specific characteristics of this spillover effect. The findings indicate that the spatial spillover effect of green technology innovation primarily occurs through geographical transmission. However, there is no significant spatial autocorrelation when using the economic distance weight matrix. Various types of environmental regulations influence the spatial spillover effect of green technology innovation in distinct ways. Specifically, market-motivated environmental regulation exhibits a U-shaped relationship with the spatial spillover effect, while command-controlled environmental regulation demonstrates an inverted U-shaped relationship, suggesting a complementary effect. Additional research shows that the upgrading of industrial structure acts as a mediator between command-controlled environmental regulation and the spatial spillover effect of green technology innovation. Government departments should comprehensively coordinate market-motivated environmental regulation and command-controlled environmental regulation, accurately assess the intensity of command-controlled measures, and prevent the migration of green technology innovation elements caused by excessive regulatory measures within enterprises.

Suggested Citation

  • Xin Zhang & Feng Xu, 2023. "Environmental Regulation and Spatial Spillover Effect of Green Technology Innovation: An Empirical Study on the Spatial Durbin Model," Sustainability, MDPI, vol. 15(19), pages 1-19, September.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:19:p:14133-:d:1246690
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