Log in

Environmental law, environmental policy stringency, and development of environmental technologies in China

  • Research Article
  • Published:
Environmental Science and Pollution Research Aims and scope Submit manuscript

Abstract

China’s fast industrialization and economic expansion has led to environmental degradation, prompting the government to implement a slew of environmental regulations and laws. This article examines how China’s stringent environmental policies and legislation have impacted the development of environmental technology. The study’s panel of Chinese companies confirmed that more stringent regulations really spurred innovation in green technology. This research lends credence to the premise that stricter environmental regulations are helpful in inspiring the development of cleaner technology that may help mitigate environmental issues. Research also shows that tighter environmental legislation increases environmental policy’s effect on technological development. According to these results, environmental law may improve the efficiency of environmental policy by providing a hospitable framework for the application of technological innovation. The findings of this research have significant implications for Chinese policymakers committed to fostering sustainable development. The need of rigorous environmental rules to support comprehensive environmental policies that promote the development of greener technology is emphasized. The results shed even more light on how crucial it is to enforce environmental laws in order to ensure that environmental policies are effectively implemented. In essence, this study contributes to the expanding body of knowledge on the link between environmental policy and technical advancement by illuminating the potential for China’s environmental policy and law to work together to encourage sustainable development. China’s investment in green tech research and development may mitigate the environmental damage caused by its rapid economic growth.

Graphical abstract

This is a preview of subscription content, log in via an institution to check access.

Access this article

Subscribe and save

Springer+ Basic
EUR 32.99 /Month
  • Get 10 units per month
  • Download Article/Chapter or Ebook
  • 1 Unit = 1 Article or 1 Chapter
  • Cancel anytime
Subscribe now

Buy Now

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Fig. 1
Fig. 2
Fig. 3
Fig. 4
Fig. 5

Similar content being viewed by others

Data availability

The data may be obtained upon request.

References

  • Abdi AH, Warsame AA, Sheik-Ali IA (2023) Modelling the impacts of climate change on cereal crop production in East Africa: evidence from heterogeneous panel cointegration analysis. Environ Sci Pollut Res 30:35246–35257

    Google Scholar 

  • Afshan S, Yaqoob T (2022) The potency of eco-innovation, natural resource and financial development on ecological footprint: a quantile-ARDL-based evidence from China. Environ Sci Pollut Res 29:50675–50685

    Google Scholar 

  • Afshan S, Yaqoob T, Meo MS, Hamid B (2023) Can green finance, green technologies, and environmental policy stringency leverage sustainability in China: evidence from Quantile-ARDL estimation. Environ Sci Pollut Res:1–15

  • Ahmed K, Ahmed S (2018) A predictive analysis of CO2 emissions, environmental policy stringency, and economic growth in China. Environ Sci Pollut Res 25:16091–16100

    CAS  Google Scholar 

  • Ando T, Li K, Lu L (2023) A spatial panel quantile model with unobserved heterogeneity. J Econom 232:191–213

    Google Scholar 

  • Behera P, Sethi N (2022) Nexus between environment regulation, FDI, and green technology innovation in OECD countries. Environ Sci Pollut Res 29:52940–52953

    Google Scholar 

  • Bhuiyan MA, Kahouli B, Hamaguchi Y, Zhang Q (2023) The role of green energy deployment and economic growth in carbon dioxide emissions: evidence from the Chinese economy. Environ Sci Pollut Res 30:13162–13173

    CAS  Google Scholar 

  • Bildirici M, Ersin ÖÖ (2023) Nexus between Industry 4.0 and environmental sustainability: a Fourier panel bootstrap cointegration and causality analysis. J Clean Prod 386:135786

    Google Scholar 

  • Carfora A, Pansini RV, Romano A, Scandurra G (2018) Renewable energy development and green public policies complementarities: the case of developed and develo** countries. Renew Energy 115:741–749

    Google Scholar 

  • Chen M, Huang W, Ali S (2023) Asymmetric linkages between wind energy and ecological sustainability: evidence from quantile estimation. Environ Dev 45:100798

    Google Scholar 

  • Chen Y, Chen Z, Guo D, Zhao Z, Lin T et al (2022) Underground space use of urban built-up areas in the central city of Nan**g: Insight based on a dynamic population distribution. Underground Space 7(5):748–766. https://doi.org/10.1016/j.undsp.2021.12.006

    Article  Google Scholar 

  • Dong Z, He Y, Wang H, Wang L (2020) Is there a ripple effect in environmental regulation in China?–Evidence from the local-neighborhood green technology innovation perspective. Ecol Ind 118:106773

    Google Scholar 

  • Du K, Cheng Y, Yao X (2021) Environmental regulation, green technology innovation, and industrial structure upgrading: The road to the green transformation of Chinese cities. Energy Econ 98:105247

    Google Scholar 

  • Fan J, Teo T (2022) Will China’s R&D investment improve green innovation performance? An empirical study. Environ Sci Pollut Res 29:39331–39344

    Google Scholar 

  • Fang Y, Wang H, Fang P, Liang B, Zheng K, Sun Q et al (2023) Life cycle assessment of integrated bioelectrochemical-constructed wetland system: environmental sustainability and economic feasibility evaluation. Resour Conserv Recycl 189:106740. https://doi.org/10.1016/j.resconrec.2022.106740

    Article  CAS  Google Scholar 

  • Feng S, Chong Y, Li G, Zhang S (2022) Digital finance and innovation inequality: evidence from green technological innovation in China. Environ Sci Pollut Res 29:87884–87900

    Google Scholar 

  • Guo Q, Zhong J (2022) The effect of urban innovation performance of smart city construction policies: Evaluate by using a multiple period difference-in-differences model. Technol Forecast Soc Change 184:122003. https://doi.org/10.1016/j.techfore.2022.122003

    Article  Google Scholar 

  • Guo Y, **a X, Zhang S, Zhang D (2018) Environmental regulation, government R&D funding and green technology innovation: evidence from China provincial data. Sustainability 10:940

    Google Scholar 

  • Habiba U, **nbang C, Anwar A (2022) Do green technology innovations, financial development, and renewable energy use help to curb carbon emissions? Renew Energy 193:1082–1093

    Google Scholar 

  • Hafeez M, Yang J, Jadoon AK, Zahan I, Salahodjaev R (2022) Exploring the asymmetric determinants of consumption and production-based CO2 emissions in China. Environ Sci Pollut Res 29:65423–65431

    CAS  Google Scholar 

  • Han Y, Zhe C, Liu X (2023) Is the carbon emissions trading system conducive to the urban green technology innovation level? Evidence from China. Energy Rep 9:3787–3799

    Google Scholar 

  • Hasan MM, Du, F. (2023) Nexus between green financial development, green technological innovation and environmental regulation in China. Renew Energy 204:218–228

    Google Scholar 

  • Hong Q, Cui L, Hong P (2022) The impact of carbon emissions trading on energy efficiency: Evidence from quasi-experiment in China's carbon emissions trading pilot. Energy Econ 110:106025

    Google Scholar 

  • Hurrell A (1994) A crisis of ecological viability? Global environmental change and the nation state. Political Stud 42:146–165

    Google Scholar 

  • Inuwa N, Adamu S, Hamza Y, Sani MB (2023) Does dichotomy between resource dependence and resource abundance matters for resource curse hypothesis? New evidence from quantiles via moments. Resour Policy 81:103295

    Google Scholar 

  • Kazemzadeh E, Fuinhas JA, Salehnia N, Osmani F (2023) The effect of economic complexity, fertility rate, and information and communication technology on ecological footprint in the emerging economies: a two-step stirpat model and panel quantile regression. Qual Quant 57:737–763

    Google Scholar 

  • Koenker R, Hallock KF (2001) Quantile regression. J Econ Perspect 15(4):143–156

    Google Scholar 

  • Kolade O, Atiase V, Murithi W, Mwila N (2021) The business models of tech hubs in Africa: implications for viability and sustainability. Technol Anal Strat Manag 33:1213–1225

    Google Scholar 

  • Lai X, Liu Z, Luo S (2020) Assessment on the effectiveness of environmental regulation in China—evidence from a panel data analysis. Environ Sci Pollut Res 27:37363–37376

    Google Scholar 

  • Li F, Xu Z, Ma H (2018) Can China achieve its CO2 emissions peak by 2030? Ecol Ind 84:337–344

    Google Scholar 

  • Li K, Qi S, Shi X (2023a) Environmental policies and low-carbon industrial upgrading: Heterogenous effects among policies, sectors, and technologies in China. Technological Forecasting and Social Change 191:122468

    Google Scholar 

  • Li S, Samour A, Irfan M, Ali M (2023b) Role of renewable energy and fiscal policy on trade adjusted carbon emissions: evaluating the role of environmental policy stringency. Renew Energy 205:156–165

    Google Scholar 

  • Li X, Guo D, Feng C (2022a) The carbon emissions trading policy of China: does it really promote the enterprises’ green technology innovations? Int J Environ Res Public Health 19:14325

    CAS  Google Scholar 

  • Li X, Hu Z, Zhang Q (2021) Environmental regulation, economic policy uncertainty, and green technology innovation. Clean Technol Environ Policy 23:2975–2988

    Google Scholar 

  • Li Z, Huang Z, Su Y (2023c) New media environment, environmental regulation and corporate green technology innovation: Evidence from China. Energy Econ 119:106545

    Google Scholar 

  • Li Z, Kuo Y-K, Mahmud AR, Nassani AA, Haffar M, Muda I (2022b) Integration of renewable energy, environmental policy stringency, and climate technologies in realizing environmental sustainability: evidence from OECD countries. Renew Energy 196:1376–1384

    Google Scholar 

  • Lin B, Ma R (2022) How does digital finance influence green technology innovation in China? Evidence from the financing constraints perspective. J Environ Manag 320:115833

    Google Scholar 

  • Liu H, Wong W-K, Cong PT, Nassani AA, Haffar M, Abu-Rumman A (2023a) Linkage among urbanization, energy consumption, economic growth and carbon emissions. Panel data analysis for China using ARDL model. Fuel 332:126122

    CAS  Google Scholar 

  • Liu J, Zhao M, Zhang C, Ren F (2023b) Analysis of the influence of heterogeneous environmental regulation on green technology innovation. Sustainability 15:3649

    Google Scholar 

  • Liu W, Shen Y, Razzaq A (2023c) How renewable energy investment, environmental regulations, and financial development derive renewable energy transition: Evidence from G7 countries. Renew Energy 206:1188–1197

    Google Scholar 

  • Liu X, Li Z, Fu X, Yin Z, Liu M, Yin L et al (2023) Monitoring house vacancy dynamics in the Pearl River Delta region: a method based on NPP-VIIRS night-time light remote sensing images. Land 12(4). https://doi.org/10.3390/land12040831

  • Liu Y, Zhang Z (2022) How does economic policy uncertainty affect CO2 emissions? A regional analysis in China. Environ Sci Pollut Res 29:4276–4290

    Google Scholar 

  • Liu Z, Sun H (2021) Assessing the impact of emissions trading scheme on low-carbon technological innovation: evidence from China. Environ Impact Assess Rev 89:106589

    Google Scholar 

  • Loong Z, Ai X, Huang T, **ang S (2021) The impact of AI on employment and the corresponding response of PRC labor law. J Chinese Hum Resour Manag 12(2):69–94. https://doi.org/10.47297/wspchrmWSP2040-800506.20211202

    Article  Google Scholar 

  • Luo Y, Salman M, Lu Z (2021) Heterogeneous impacts of environmental regulations and foreign direct investment on green innovation across different regions in China. Sci Environ 759:143744

    CAS  Google Scholar 

  • Malode SJ, Prabhu KK, Mascarenhas RJ, Shetti NP, Aminabhavi TM (2021) Recent advances and viability in biofuel production. Energy Convers Manag: X 10:100070

    CAS  Google Scholar 

  • Nayak DK, Hazarika B (2023) Linkage between income and government expenditure at indian sub-nationals: a second-generation panel cointegration techniques. J Dev Areas 57:205–228

    Google Scholar 

  • Nesta L, Vona F, Nicolli F (2014) Environmental policies, competition and innovation in renewable energy. J Environ Econ Manag 67:396–411

    Google Scholar 

  • Nitlarp T, Kiattisin S (2022) The impact factors of Industry 4.0 on ESG in the energy sector. Sustainability 14:9198

    Google Scholar 

  • Nzama L, Sithole T, Kahyaoglu SB (2023) The impact of government effectiveness on trade and financial openness: the generalized quantile panel regression approach. J Risk Financial Manag 16:14

    Google Scholar 

  • Ouyang X, Li Q, Du K (2020) How does environmental regulation promote technological innovations in the industrial sector? Evidence from Chinese provincial panel data. Energy Policy 139:111310

    Google Scholar 

  • Poveda AC, Martínez CIP (2023) Violence and economic development in Mexico: a panel data cointegration approach. Dev Stud Res 10:2169733

    Google Scholar 

  • Qin Z, Liang Y, Yang C, Fu Q, Chao Y, Liu Z et al (2023) Externalities from restrictions: Examining the short-run effects of urban core-focused driving restriction policies on air quality. Trans Res Part D: Trans Environ 119:103723. https://doi.org/10.1016/j.trd.2023.103723

    Article  Google Scholar 

  • Samant S, Thakur-Wernz P, Hatfield DE (2020) Does the focus of renewable energy policy impact the nature of innovation? Evidence from emerging economies. Energy Policy 137:111119

    Google Scholar 

  • Shahzad U, Radulescu M, Rahim S, Isik C, Yousaf Z, Ionescu SA (2021) Do environment-related policy instruments and technologies facilitate renewable energy generation? Exploring the contextual evidence from developed economies. Energies 14:690

    CAS  Google Scholar 

  • Song M, Zheng H, Shen Z (2023) Whether the carbon emissions trading system improves energy efficiency–Empirical testing based on China's provincial panel data. Energy 275:127465

    Google Scholar 

  • Su Y, Gao X (2023) Environmental regulation and its influence on energy efficiency and environmental performance: do technology innovation and financial efficiency matter? Environ Sci Pollut Res:1–9

  • Sueyoshi T, Mo F, Wang DD (2022) Sustainable development of countries all over the world and the impact of renewable energy. Renew Energy 184:320–331

    Google Scholar 

  • Tu Y, Liu R, Li H (2022) The development of digital economy and the future of the Trade Union Law of the People's Republic of China. J Chinese Hum Resour Manag 13(2):76–85. https://doi.org/10.47297/wspchrmWSP2040-800507.20221302

    Article  Google Scholar 

  • Wang A, Hu S, Li J (2021) Does economic development help achieve the goals of environmental regulation? Evidence from partially linear functional-coefficient model. Energy Econ 103:105618

    Google Scholar 

  • Wang B, Khalid S, Mahmood H (2023a) R&D Spending and economic policy uncertainty in Asian countries: an advanced panel data estimation study. J Knowl Econ :1-20

  • Wang Q, Qu J, Wang B, Wang P, Yang T (2019) Green technology innovation development in China in 1990–2015. Sci Total Environ 696:134008

    CAS  Google Scholar 

  • Wang Q-J, Wang H-J, Chang C-P (2022a) Environmental performance, green finance and green innovation: what's the long-run relationships among variables? Energy Econ 110:106004

    Google Scholar 

  • Wang W, Li Y, Lu N, Wang D, Jiang H, Zhang C (2020) Does increasing carbon emissions lead to accelerated eco-innovation? Empirical evidence from China. J CleanProd 251:119690

    Google Scholar 

  • Wang X, Chai Y, Wu W, Khurshid A (2023b) The empirical analysis of environmental regulation’s spatial spillover effects on green technology innovation in China. Int J Environ Res Public Health 20:1069

    Google Scholar 

  • Wang Z, Yen-Ku K, Li Z, An NB, Abdul-Samad Z (2022b) The transition of renewable energy and ecological sustainability through environmental policy stringency: Estimations from advance panel estimators. Renew Energy 188:70–80

    Google Scholar 

  • Wei L, Lin B, Zheng Z, Wu W, Zhou Y (2023) Does fiscal expenditure promote green technological innovation in China? Evidence from Chinese cities. Environ Impact Assess Rev 98:106945

    Google Scholar 

  • **e F, Liu Y, Guan F, Wang N (2020) How to coordinate the relationship between renewable energy consumption and green economic development: from the perspective of technological advancement. Environ Sci Eur 32:1–15

    CAS  Google Scholar 

  • **e R, Teo TS (2022) Green technology innovation, environmental externality, and the cleaner upgrading of industrial structure in China—considering the moderating effect of environmental regulation. Technol Forecast Soc Change 184:122020

    Google Scholar 

  • Xu H, Pan X, LI J, Feng S, Guo S (2023) Comparing the impacts of carbon tax and carbon emission trading, which regulation is more effective? J Environ Manag 330:117156

    CAS  Google Scholar 

  • Yadav G, Mishra A, Ghosh P, Sindhu R, Vinayak V, Pugazhendhi A (2021) Technical, economic and environmental feasibility of resource recovery technologies from wastewater. Sci Total Environ 796:149022

    CAS  Google Scholar 

  • Yang Y, Su X, Yao S (2022) Can green finance promote green innovation? The moderating effect of environmental regulation. Environ Sci Pollut Res 29:74540–74553

    Google Scholar 

  • Yi M, Fang X, Wen L, Guang F, Zhang Y (2019) The heterogeneous effects of different environmental policy instruments on green technology innovation. Int J Environ Res Public Health 16:4660

    Google Scholar 

  • Yu B, Zhou X (2023) Urban administrative hierarchy and urban land use efficiency: Evidence from Chinese cities. Int Rev Econ Finance. https://doi.org/10.1016/j.iref.2023.06.033

  • Zaghdoudi T, Maktouf S (2017) Threshold effect in the relationship between environmental taxes and CO2 emissions: a PSTR specification. Econ Bull 37:2086–2094

    Google Scholar 

  • Zhang H, Shao Y, Han X, Chang H-L (2022a) A road towards ecological development in China: The nexus between green investment, natural resources, green technology innovation, and economic growth. Resour Policy 77:102746

    Google Scholar 

  • Zhang J, Li F, Ding X (2022b) Will green finance promote green development: based on the threshold effect of R&D investment. Environ Sci Pollut Res 29:60232–60243

    Google Scholar 

  • Zhang YJ, Shi W, Jiang L (2020) Does China's carbon emissions trading policy improve the technology innovation of relevant enterprises? Bus Strategy Environ 29:872–885

    Google Scholar 

  • Zhao S, Jiang Y, Wang S (2019) Innovation stages, knowledge spillover, and green economy development: moderating role of absorptive capacity and environmental regulation. Environ Sci Pollut Res 26:25312–25325

    Google Scholar 

  • Zhao S, Shi A, An H, Zhou H, Hu F (2023) Does the low-carbon city pilot contribute to the blue sky defense? Evidence from China. Environ Sci Pollut Res. https://doi.org/10.1007/s11356-023-28262-w

  • Zhou F, Wang X (2022) The carbon emissions trading scheme and green technology innovation in China: A new structural economics perspective. Econ Anal Policy 74:365–381

    Google Scholar 

  • Zhou L, ** F, Wu B, Chen Z, Wang CL (2023) Do fake followers mitigate influencers’ perceived influencing power on social media platforms? The mere number effect and boundary conditions. J Bus Res 158:113589. https://doi.org/10.1016/j.jbusres.2022.113589

    Article  Google Scholar 

  • Zhou X, Du J (2021) Does environmental regulation induce improved financial development for green technological innovation in China? J Environ Manag 300:113685

    Google Scholar 

Download references

Acknowledgements

This work was supported by Major project of the National Social Science Foundation “Research on technical regulations based on the rule of law, national governance and global governance” (21&ZD192).

Author information

Authors and Affiliations

Authors

Contributions

Jun Fang: ideas and concepts, data gathering, methodology, writing (first draft), visualization, supervision, editing (review and editing), and software.

Corresponding author

Correspondence to Jun Fang.

Ethics declarations

Ethical approval and consent to participate

We declare that we have no human participants, human data, or human tissues.

Consent for publication

N/A

Competing interests

The authors declare no competing interests.

Additional information

Responsible Editor: Arshian Sharif

Publisher’s note

Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Rights and permissions

Springer Nature or its licensor (e.g. a society or other partner) holds exclusive rights to this article under a publishing agreement with the author(s) or other rightsholder(s); author self-archiving of the accepted manuscript version of this article is solely governed by the terms of such publishing agreement and applicable law.

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Fang, J. Environmental law, environmental policy stringency, and development of environmental technologies in China. Environ Sci Pollut Res 30, 101234–101249 (2023). https://doi.org/10.1007/s11356-023-29023-5

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s11356-023-29023-5

Keywords

Navigation