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The relationship between environmental regulation and innovation has long been a key issue of scholarly interest. The Porter hypothesis posits that environmental regulations can effectively promote innovation. However, with the rapid development of the Internet, the relationship between environmental regulation and innovation has changed. Through a theoretical analysis, this paper finds that the development of the Internet can not only directly promote innovation but also inhibit innovation through environmental regulations. This paper uses Chinese city-level data from 2014 to 2016 to empirically test the relationship among the Internet, environmental regulation, and innovation. The study finds that (1) the increase in the Internet level and in the intensity of environmental regulations promotes innovation, and the results remain stable after the replacement of the Internet level metrics, (2) the increase in the Internet level inhibits the positive effect of environmental regulations on innovation, but its inhibitory effect is lower than the promotion effect of the Internet on innovation, and (3) the Internet and environmental regulations have a significant promotion effect on the application and acquisition of three types of patents, including invention patents, utility model patents and design patents, with the application and acquisition of utility model patents having the greatest promotion effect, and (4) the analysis of heterogeneity shows that environmental regulation has a greater effect on innovation in eastern and provincial capital cities, and the Internet has a greater effect on innovation in western and nonprovincial capital cities. Finally, this article puts forward policy recommendations based on three aspects: strengthening Internet construction, implementing environmental regulations and policies based on local conditions, and increasing support for R&D and innovation. [ABSTRACT FROM AUTHOR]

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. [ABSTRACT FROM AUTHOR]

With the process of China's economic transformation and structural adjustment, the trend of thermal power industry transfer is more and more obvious. Under the background of industrial transfer, the research of the influence of environmental regulation on technological innovation has become a vital issue that needs to be discussed urgently for the current high-quality economic development. Based on the thermal power industry data in 30 provinces of China from 2008 to 2017, this paper constructs a mediating effect model to examine the relationship among environmental regulation, industrial transfer, and technological innovation. The results reveal that: (1) there is a U-shaped relationship between environmental regulation and technological innovation; (2) the increase of environmental regulation intensity promotes the thermal power industry to move to areas with loose environmental regulation; (3) industrial transfers play a mediating role in the process of environmental regulation influencing technological innovation. Therefore, the government should formulate scientifically effective environmental regulation policies so that the thermal power industry can realize orderly transfer and realize technological innovation. [ABSTRACT FROM AUTHOR]

Green innovation (GI) is increasingly recognised as an effective strategy for tackling climate change, mitigating environmental issues, and promoting sustainable development. Using panel data of the Chinese listed firms from 2007 to 2019, this study adopts the difference-in-differences approach to assess the impact of the green finance policy (GFP) initiated by the Chinese government in 2012 on the green innovation performance of firms. The findings reveal that the GFP significantly boosts the green innovation performance of heavily polluting enterprises (HPEs). Notably, this effect is more pronounced in state-owned enterprises and firms with high dependence on external finance. Compared with penalty-based regulations, incentive-based and voluntary environmental regulations demonstrate more significant moderating effects on the relationship between the GFP and green innovation performance for HPEs. We also identify improved efficiency in the usage of green investments as a potential mechanism through which the GFP enhances the green innovation performance of HPEs. Further comparative analysis shows that green enterprises can achieve simultaneous improvement in both the quality and quantity of green innovation, whereas HPEs predominantly exhibit enhancements in innovation quantity. To maximise the GFP's positive effects, it is recommended to facilitate more targeted bank lending towards HPEs to support their structural transformation. Additionally, the coordinated deployment of diverse environmental policy instruments is advised to exploit their synergistic effects. • This paper confirms the positive relationship between Green Finance Policy (GFP) and the green innovation. • We develop a novel machine learning approach to enhance the accuracy of variable measurements. • Firms with different ownership structure and external finance reliance are impacted differently by the GFP. • Both incentive-based and voluntary environmental regulations have positive moderation effects. • GFP can improve the green innovation by enhancing the green investment efficiency. [ABSTRACT FROM AUTHOR]