Empirical Study on the Effect of Environmental Regulation on Technological Innovation Based on China Provincial Panel Data of 2005-2013

In order to achieve sustainable economic and social development model, it is a significant way to promote technological innovation by environmental regulation. Though Porter Hypothesis holds the opinion the effect of environmental regulation on technological innovation is positive, there are different opinions under certain conditions, especially in the condition of China. Whether the effect of environmental regulation on technological innovation is positive or negative, and whether different enviromnental regulations have the same effect or not in China are not clear. So we carry on empirical study on the impact of enviromnental regulation on technological innovation based on China provincial panel data of 2005-2013. The results show that three waste and waste water discharge regulations have negative effect to technological innovation, while the effect of pollution discharge fee regulation is not significance and the effect of waste gases, solid waste discharge and the environmental pollution treatment investment regulations are positive on technological innovation in China. Our study has implications for the researches and practices of environmental regulation and technological innovation in China.