Research On The Impact Of Environmental Regulation On The Efficiency Of Green Innovation In China’s Industry

Since the reform and opening up,the rapid growth of China’s industry has brought severe challenges to the environment.It is urgent to establish a green development concept and update green production technology,moving from simply pursuing the maximization of economic benefits as the goal to achieving a win-win situation in environmental protection and economic benefits.In the process of achieving high-quality industrial development,green innovation and green transformation have become inevitable choices.In order to effectively address the issue of industrial environmental pollution,the Chinese government has adopted various environmental regulatory policies to guide enterprises in their green transformation.Environmental regulation has two effects on green innovation.One is the "innovation compensation" effect,which promotes green innovation by enterprises through regulation,thereby reducing regulatory costs;The second is the "follow cost" effect,which means that inappropriate environmental regulation policies may increase the cost of production and operation of enterprises,thereby reducing the investment of enterprises for innovation.Therefore,it is of important theoretical and practical significance to study how to improve the efficiency of green innovation in China’s industry and reduce the cost effect of compliance brought about by environmental regulatory policies by formulating appropriate environmental regulatory policies.This article first summarizes the relevant literature on environmental regulation and green innovation efficiency in China’s industry,expounds the relevant theoretical basis,and analyzes the mechanism of environmental regulation on green innovation efficiency on this basis,providing theoretical support for further research on the impact of environmental regulation on green innovation efficiency in the future.Based on this,panel data of 35 industrial sectors in China from 2012 to 2020 are selected,and the efficiency of green innovation in China’s industry is measured using the super efficiency SBM model.Finally,a fixed effect model is constructed based on panel data of 35 industrial industries from 2012 to 2020,and a threshold effect model is constructed using environmental regulation intensity and industry pollution index as threshold variables for empirical analysis.The research results show that: 1.The overall efficiency of green innovation in China’s industry is low,but there is an upward trend,with a large gap between industries;The overall intensity of industrial environmental regulation in China shows a fluctuating upward trend,and the level of environmental regulation in polluting industries is relatively high;2.Overall,the impact of environmental regulation on the efficiency of green innovation in China’s industry presents an "inverted U-shaped" pattern of first promoting and then inhibiting.When the level of environmental regulation is low,the "innovation compensation effect" promotes green innovation.When the level of environmental regulation is raised to a certain extent,the "compliance cost effect" caused by the crowding out of innovation investment increases,not only limiting the investment in green innovation to a certain extent,It also inhibits the improvement of green innovation efficiency;3.In terms of industries,the impact is more obvious in polluting industries.The pollution scale and intensity of enterprises in heavily polluted industries are far higher than those in clean industries,so the environmental costs faced by heavily polluted enterprises are correspondingly higher.When these companies face the same environmental regulatory pressures,they often take the lead in taking action to avoid paying higher fees for pollution.4.The impact of environmental regulations on the efficiency of green innovation has a dual threshold effect.Currently,most industries in China are in the middle regulatory level range where environmental regulations can promote the efficiency of green innovation.Based on the above research conclusions,this article puts forward corresponding policy recommendations on how to formulate environmental regulation policies and improve the efficiency of industrial green innovation in China.