Research on the effects of command-and-control and market-oriented policy tools on China’’s energy conservation and emissions reduction innovation

TheimpactofenvironmentalregulationontechnologyinnovationisahotspotincurrentresearchwherealargenumberofempiricalstudiesarebasedonPorterHypothesis(PH).However,therearestillcontroversiesinacademiaabouttheestablishmentof'weak'and'narrow'versionsofPH.Basedonthepaneldataofapplicationforpatentofenergyconservationandemissionreduction(ECER)technologyofChinesecityscaleduring2008-2014,comprehensiveenergyprice,pollutantemission,etc.,mixedregressionmodelandsystematicgeneralizedmethodofmomentsmethodwereadopted,respectively,tostudytheimpactofmarket-orientedandcommand-and-controlpolicytoolonChina’sECERtechnologyinnovation.Theresultsshowthattheenvironmentalregulationhinderedthetechnologicalinnovationintheimmediatephase;however,itturnedouttobepositiveinthefirst-lagphase.Hence,theestablishmentof“weak”PHistime-bounded.Thecommand-and-controlpolicytoolplayedamorepositiveroleinpromotingtechnologicalinnovationinthefirst-lagphasethanmarket-orientedpolicytool.Therefore,'narrow'PHisnottenable.ThereasonisthatthemainparticipantsofChina’sECERtechnologyinnovationarestate-ownedcompaniesandpublicinstitutions.Regionallyspeaking,theimpactwhichcommand-and-controlpolicytoolhasontechnologicalinnovationatsightwasnonsignificantintheeastern,thecentral,andthewesternregionsofChinawhilstmarket-orientedpolicytoolhadanegativeeffect.Andmarket-orientedpolicytoolinthecentralregionhadstrongestnegativeeffect,whichwoulddiminishintheeasternregionandbecomeweakestinthewesternregion.Thiswasrelatedtoregionalenergyconsumptionlevelandthemarketeconomicvitality.