Research on the Impact of Environmental Regulation on Green Technology Innovation from the Perspective of Regional Differences: A Quasi-Natural Experiment Based on China’s New Environmental Protection Law

Abstract

Environmental regulations have a certain impact on regional green technology innovation affected by regional differences. Using the panel data of 30 provincial-level administrative regions in China (excluding Tibet, Hong Kong, Macao, and Taiwan) from 2011 to 2019, we consider China’s new environmental protection law (NEPL) as a quasi-natural experiment to evaluate the impact of environmental regulation on green technology innovation in a difference-in-differences (DID) framework and further analyze the influences of regional differences. The results indicate that environmental regulations can promote regional green technology innovation, and that regional differences have a significant impact on this issue. Furthermore, environmental regulations in regions with high and low levels of economic development and education, and regions with medium and low levels of energy consumption have a significant impact on green technology innovation. The government should reasonably formulate environmental regulation policies on the basis of regional differences, encourage cross-regional exchanges and cooperation, and more efficiently stimulate regional green technology innovation to achieve sustainable development.