Environmental Regulation, Financial Development And Technological Innovation

Facing the double pressure of global shortage of resources and environmental problems, development of eco-economy has become the first choice of countries around the world. At present our country is in a critical period of modern industrialization, urbanization and internationalization, population and environment bearing pressure, resource and environmental problems especially prominent. Effective environmental regulation policy, should be efficient in the process of reducing pollution, as far as possible to protect the economic interests of enterprises, so as to achieve win-win economic and environmental protection, which requires special attention to technology innovation of Chinese enterprises, and accurately grasp the relationship between environmental regulation and technology innovation. In recent years, the growing economies promote the development of China’s financial markets greatly. Because of the unbalance economic growth, financial development level also present different situation around the state. Sound development of the financial markets can reduce the cost of external financing, offer efficient access to information, effective allocation of resources and provide the necessary capital market conditions and operational conditions for enterprise technology innovation.This paper respectively summarizes the domestic and foreign scholars’ research on the theory of environmental regulation, financial development and technology innovation. And then from the theory angle analyse the internal relation of environmental regulation, financial development and technology innovation. Using the panel data of year 1999-2012 to determine the areas relationship of environmental regulation, financial development and technological innovation, research shows that the influence of environmental regulation on technical innovation exist regional differences, the eastern region is significantly influenced, the level of financial development still is an important influencing factor of technology innovation output. Then establish a threshold panel research on environmental regulation, financial development and technology innovation. Through on environmental regulation, financial development as the threshold variable, and study how financial development affects technology innovation out put under the angle of environmental regulation combined with the financial development perspective. Research results show that low intensity of environmental regulation can inhibit innovation, after environmental regulation crossing the threshold, environmental regulation can promote technology innovation; When combined with regional financial development, environmental regulation should be maintained at a certain range can effectively promote technology innovation; Double threshold effect between financial development and technology innovation, too low or too high level of financial development has inhibitory effect on technology innovation output. Under the perspective which environmental regulation combined with financial development, low level of financial development can promote the technology innovation.