Threshold Effects Of Environmental Regulation On The Impact Of Regional Technological Innovation Capacity

Since the late20th century, the environmental pollution has been continuedworsening and the consumption of natural resources has been overused around theworld. The countries which are busy in promoting their economic growth at the sametime have to think about how to keep a balanced and sustainable developingrelationship between economy and environment. The implementation ofenvironmental regulation policy has become the strategic choice for most countriesand regions.Under the background of economic globalization, the quick development ofknowledge-based economy, and the increasing market competition in the world, theactivity of technological innovation has become more and more the continuousdriving force of a regional economic development. The ability of technologicalinnovation has become the key element the make a nation or a region an invincibleposition in the new economic pattern. The research on the effects of environmentalregulation on the ability of technological innovation has received a lot of attentionbecause the technological innovation plays a very important role in environmentprotection and the coordinated development of economy. As for the resources and theenvironmental pressures caused by extensive growth mode carried out for a long timein China, the Twelfth Five-year Plan pointes out clearly,“the direction of social andeconomic development in this period would be the optimization of economic structure,and the sustainable development of population, resources and environment and thewhole development of society”. However, in the process of fulfilling the aims ofenvironment protection, the environment regulation policy, a high efficient and properone, should reduce the bad effects on the economic development of enterprises andregions which are regulated by it so as to achieve the win-win situation, the economicgrowth and the environment protection.This paper, combining the theory analysis and the empirical analysis, uses thethreshold panel method to construct econometrics model to probe into the effects ofenvironmental regulation on the ability of regional technological innovation. Firstly,this paper has a literature review of the related theory of and research onenvironmental regulation and technological innovation. In the second place, the paperhas a general analysis and a conclusion of the state of the regional environmentalregulation and the ability of technological innovation in China through choosing proper index. Thirdly, this paper analyzes the effects of environmental regulation onthe technological innovation of the eastern, southern, western and northern Chinafrom the empirical perspective through the construction of econometrics model. Atlast，based on the analysis of collected data and the finding result，this paper tries topropose the standard and intensity of environmental regulation which applies toregional economic development.