Impact Of Environmental Regulation And Foreign Direct Investment On Green Technology Innovation In China

The Fifth Plenary Session of the 18 th Central Committee of the Communist Party of China first put forward the concept of green development,calling on China to follow the path of green development.Green development is inseparable from green technological innovation,Green technology innovation not only gives consideration to economic benefit,but also environmental benefit.It is an important factor to promote the green development of our country.In this context,the environmental regulation policy has guided the future development direction of Chinese enterprises,which is green and efficient.Foreign direct investment plays an important role in promoting the technological innovation of Chinese enterprises,do they provide incentives for green technological innovation? How motivated?Does the foreign direct investment play a moderating role in the impact of environmental regulation policies on Green Technology Innovation? This paper makes theoretical analysis and empirical analysis on the above issues.Firstly,the environmental regulation policy is divided into the command-control and market-incentive environmental regulation policies.This paper conducts a theoretical analysis on the impact of environmental regulatory policies and foreign direct investment on green technology innovation,and then conducting an empirical analysis based on the theoretical framework,to study the impact of Environmental Regulation on Green Technology Innovation,the impact of foreign direct investment on green technology innovation,and whether foreign direct investment plays a moderating role in environmental regulation.The main conclusions are as follows: first,in the national sample,both the command-and-control environmental regulation policy and the market incentive environmental regulation policy have promoted China’s green technology innovation,market-driven environmental regulation policies have promoted China’s green technology innovation among the samples from the eastern,central and western regions of China,while command-and-control environmental regulation policies have promoted China’s green technology innovation only in the eastern region,in the central and western regions there is no significant role in promoting.Second,foreign direct investment did not promote China’s green technology innovation in the national sample,nor did it significantly promote China’s green technology innovation in the eastern and western samples,but it did promote China’s green technology innovation in the central sample.Third,in the national sample,both command and control environmental regulation policies and market incentive environmental regulation policies,the foreign direct investment played a mediating role in its impact on green technology innovation in the central and western regions,there is no significant moderating effect between the cross items of foreign direct investment and command-and-control environmental regulation policies and the cross items of foreign direct investment and market-incentive environmental regulation policies have significant moderating effect.In response to the above conclusions,this article puts forward the following suggestions:First,further improve the environmental regulation policies in line with the regional development level,and promote green technological innovation in accordance with local conditions.Integrate command-and-control environmental regulatory policies with market-incentive environmental regulatory policies to give full play to the combined effects of policies.Second,further strictly control the quality of foreign direct investment and strengthen the good interaction between domestic enterprises and foreign-invested enterprises.To review and track the quality of enterprises making foreign direct investment in China,the government should adjust the flow of foreign capital,especially to increase the inflow of foreign capital into the green technology innovation industry.Third,further improve the supervision system for policy implementation and improve the government’s ability to execute.For example,the results of the improvement of the ecological environment are included in the evaluation criteria of officials’ performance,and the establishment of a green supervision agency is only responsible to the higher-level supervision agency.