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Environmental regulation, market demand, and green innovation: spatial perspective evidence from China

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Abstract

This paper used a dynamic spatial panel model to empirically analyze the effects of environmental regulation, market demand, and the associated spatial spillovers on regional green innovation in China, from which the following was found. (1) The environmental regulations had a positive “U-shaped” effect on local green innovation and a positive neighborhood spillover effect, and market demand had a significant positive effect on local green innovation and a “ripple effect.” (2) The mechanism analysis found that the environmental regulations tended to inhibit regional green innovation input through a “cost compliance” effect, and market demand had a stronger incentive effect on innovation input than the environmental regulations, thus promoting the improvement of green innovation level. (3) The environmental regulation and market demand effects on green innovation had obvious spatial and temporal heterogeneity. The results of this study could help to promote regional green innovation by formulating reasonable environmental policies and stimulating the vitality of green technology market.

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Data availability

The datasets used and/or analyzed during the current study are available from the corresponding author on reasonable request.

Notes

  1. ①Eastern region: Beijing, Tianjin, Hebei, Liaoning, Shanghai, Jiangsu, Zhejiang, Fujian, Shandong, Guangdong, Hainan; Central region: Shanxi, Jilin, Heilongjiang, Anhui, Jiangxi, Henan, Hubei, Hunan; Western region: Inner Mongolia, Guangxi, Chongqing, Sichuan, Guizhou, Yunnan, Shaanxi, Gansu, Qinghai, Ningxia, Xinjiang.

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Funding

Humanities and Social Sciences Youth Foundation, Ministry of Education of the Peoples’ Republic of China [grant number 15YJC630081]. Sichuan Federation of Social Science Associations [grant number SC20TJ001]. Sichuan Science and Technology Program [grant number 2022JDTD0022].

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Authors and Affiliations

  1. College of Management, Sichuan Agricultural University, 211 Huimin Road, Wenjiang District, Chengdu, 611130, China

    Xiaoyu Shao, Sha Liu, Ruiping Ran & Yunqiang Liu

  2. Sichuan Center for Rural Development Research, Chengdu, 611130, China

    Ruiping Ran

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  1. Xiaoyu Shao
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XS: Data curation, formal analysis, and writing-original draft. SL: Software, visualization, and writing-review and editing. RR: Methodology, project administration, and validation. YL: Conceptualization, funding acquisition, and supervision.

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Correspondence to Yunqiang Liu.

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Shao, X., Liu, S., Ran, R. et al. Environmental regulation, market demand, and green innovation: spatial perspective evidence from China. Environ Sci Pollut Res 29, 63859–63885 (2022). https://doi.org/10.1007/s11356-022-20313-y

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