Environmental regulation, import trade, and green technology innovation

Abstract

To further clarify the relationship between environmental regulation and green technology innovation and discuss how environmental regulation affects green technology innovation through import trade, this paper analyzes the impacts of environmental regulation and import trade on green technology innovation and the transmission effect of import trade based on panel data for 30 provinces in China for 2008 to 2017. The results show that (1) environmental regulation first plays a role in promoting green technology innovation and then restrains it, and import trade can significantly promote green technology innovation; (2) under the constraints of stronger environmental regulations, import trade has a significantly positive effect on green technology innovation; and (3) environmental regulation can further enhance the technology spillover effects of import trade in regions with high absorptive capacity and regions with high levels of R&D investment. This paper analyzes the impact of environmental regulation on green technology innovation from the perspective of import trade and makes up for the deficiencies of existing research. It also lays a foundation for scholars to study the relationship between environmental regulation and green technology innovation in the midst of heterogeneous government regulation capabilities and industries in the future.

Keywords: Environmental regulation; Green technology innovation; Import trade; Pollution reduction.