Environmental Regulation and Technology Innovation: Evidence from China

摘要

The paper attempts to empirically study the relationship between environmental regulation and technology innovation in three different regions of China based on data from 1985 to 2008 by using Co-integration and Granger Test.Our results show that envirnomental regulation has a positive effect on technology innovation in these regions in the long term, but where their Granger causality relationship are different. So, under resource and environmental constraints, environmental policies which are oriented towards technology innovation should be made and enforced based on the facts of regional unbalanced economic growth in China.