Journal of Guizhou University of Finance and Economics ›› 2019 ›› Issue (06): 36-43.

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Can Environmental Regulation Stimulate China Enterprises' Innovation?-Based on the analysis of the Lagrange mathematical model

ZHOU Qian1,2, GE Yang2   

  1. 1. China Pharmaceutical University, Nanjing, Jiangsu 210009, China;
    2. Nanjing University, Nanjing, Jiangsu 210000, China
  • Received:2019-05-29 Online:2019-11-15 Published:2019-11-28

Abstract: The internal driving mechanism of environmental regulation is to enhance the ability of industrial technological innovation. Can environmental regulation force industrial technological innovation? Based on this proposition, this paper divides industrial technological innovation into pollution control technological innovation and production technological innovation, constructs the transmission mechanism model of environmental regulation and industrial technological innovation, and makes empirical verification.The results show that the relationship between environmental regulation intensity and technological innovation is similar to Kuznets curve, and positively related to technological innovation of pollution control.Enhanced environmental regulation not only promotes technological innovation of pollution control in enterprises, but also intensifies investment crowding in technological innovation of production, which makes technological innovation of production appear uncertain when environmental regulation reaches medium intensity.To this end, we should implement differentiated environmental regulation policies and strengthen the follow-up effect of the implementation of regulatory policies.We will improve the incentive and subsidy mechanism for pollution control and strengthen the government's support and supervision for hazardous waste disposal industries,enrich the design of matching policy for environmental regulation.We should strengthen the organic combination of command control and public participation environmental regulation tools, improve environmental information feedback system, and force enterprises to strengthen and innovate pollution control technology.

Key words: environmental regulation, enterprise technology, hicks neutral, technology inversion mechanism

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