Exploring the role of technology innovation and environmental regulation in energy efficiency

Abstract

This study adopts a relatively infrequent approach to explore the impact of environmental regulation and technological innovation on energy efficiency (EFF) based on the undesired superefficiency SBM and random Tobit model. To study the universal EFF, we establish the undesired superefficiency SBM model, which is composed of three input indexes such as energy, one expected output index, and three pollution emissions as the undesired output index, consider the EFF of the sample with an effective decision-making unit (DMU) value less than 1, and calculate with the MATLAB software, according to panel data of 30 Chinese provincial-level regions from 2001 to 2019. The empirical results show that the EFF has an N-type trend in the eastern, central, and western regions of China. When exploring the impact of environmental regulation and technological innovation on EFF, we conduct an empirical analysis of the eastern, central, and western regions with the random Tobit model. The regression results indicate that the impact of environmental regulation on EFF in the different regions varies significantly. Technological innovation has different impacts on EFF in different regions and is the main influencing factor of EFF. Moreover, we strive to analyze the impact of cross-term environmental regulation and technological innovation and find that the cross-term has a significant positive impact on EFF in each region. These results emphasize that environmental regulation and technological innovation have positive or negative impacts on EFF, and both impacts may exist simultaneously, which is a perfection of the EFF theory.