The Effect of Environmental Regulation on Technological Advancement : Based on Empirical Analysis of Chinese Provincial Panel Data

摘要

This paper is an empirical study of the effect of environmental regulation upon technological advancement based on the panel data collected from 30 provinces, municipalities and autonomous regions in mainland China from 2000 to 2010. The results show that on a national basis environmental regulation has a positive effect upon technological advancement, but there lies regional disparity between the east, middle and west of China: The effect is positive in the east while negative in the middle and west. This paper further proves the effect of environmental regulation upon technological progress follows an inverted "N"-shaped curve and then puts forward some policy suggestions.