The relationship between environmental regulation (ER) and any associated innovative technologies has been studied in the previous decades; however, the estimated results have varied with no obvious consensus. To analyse what drives the different estimates in existing studies, we investigated the regulation–innovation relationship through a meta-analysis of 1276 estimates reported in 49 studies. In our analysis, 41 aspects of study design were controlled, Bayesian model averaging (BMA), and frequentist model averaging (FMA) methods were used to address model uncertainty problems. Our results suggested that controlling resources and ignoring endogeneity problems both played robust and methodical roles in explaining the differences in individual study results. Additionally, our results also indicated that five factors (middle year, publication year, usage of province-level data, linear model function, and the difference-in-differences (DID) model) consistently explained the differences in the reported estimates. We found that the ER had almost zero influence on technical innovation; more than one flexible policy instrument was required to trigger innovative activities among firms and sectors.
WienerJB. Global environmental regulation: instrument choice in legal context. Yale LJ1998; 108: 677.
2.
AmbecSCohenMAElgieS, et al.The porter hypothesis at 20: can environmental regulation enhance innovation and competitiveness?Rev Environ Econ Policy2013; 7: 2–22.
3.
GollopFMRobertsMJ. Environmental regulations and productivity growth: the case of fossil-fueled electric power generation. J Polit Econ1983; 91: 654–674.
4.
GrayWBShadbegianRJ. Environmental regulation, investment timing, and technology choice. J Ind Econ1998; 46: 235–256.
5.
WalleyNWhiteheadB. It's not easy being Green. Read Bus Environ1994; 36: 4.
6.
PorterMEder LindeC. Toward a new conception of the environment-competitiveness relationship. J Econ Perspect1995; 9: 97–118.
7.
PorterME. America's green strategy. Read Bus Environ1991; 264: 168.
8.
BrunnermeierSBCohenMA. Determinants of environmental innovation in US manufacturing industries. J Environ Econ Manage2003; 45: 278–293.
9.
LanoiePLaurent-LucchettiJJohnstoneN,et al.Environmental policy, innovation and performance: new insights on the porter hypothesis. J Econ Manag Strateg2011; 20: 803–842.
10.
YangC-HTsengY-HChenC-P. Environmental regulations, induced R&D, and productivity: evidence from Taiwan's Manufacturing industries. Resour Energy Econ2012; 34: 514–532.
11.
ChenXYiNZhangL, et al.Does institutional pressure foster corporate Green innovation? Evidence from China's Top 100 companies. J Clean Prod.2018; 188: 304–311.
12.
SamantSThakur-WernzPHatfieldDE. Does the focus of renewable energy policy impact the nature of innovation? Evidence from emerging economies. Energy Policy2020; 137: 111119.
13.
StanleyTDJarrellSB. Meta-Regression Analysis A Quantitative Method of Literature Surveys1989; 19(3): 299–308.
14.
CohenMATubbA. The impact of environmental regulation on firm and country competitiveness. A Meta-analysis of the Porter Hypothesis2018; 5: 371–399.
15.
MulatuAFloraxRJGMWithagenCA. Environmental regulation and competitiveness: an exploratory meta-analysis. In: BöhringerCLöschelA (eds) Empirical modeling of the economy and the environment. Heidelberg: Physica-Verlag HD, 2003, pp.23–54.
16.
AminiSMParmeterCF. Comparison of model averaging techniques: assessing growth determinants. J Appl Econom2012; 27: 870–876.
17.
AmbecSCohenMAElgieS, et al.The porter hypothesis at 20: can environmental regulation enhance innovation and competitiveness?Rev Environ Econ Policy2013; 7: 2–22.
18.
YuFCaoJShiY. Double-threshold effect of technological innovation on environmental-responsibility fulfillment: evidence from high-polluting SMEs in China. J Small Bus Manag2021; 59: 1–25.
19.
Molina-AzorinJFTariJJClaver-CortésE, et al.Quality management, environmental management and firm performance: a review of empirical studies and issues of integration. Int J Manag Rev2009; 11: 197–222.
20.
HorbachJRammerCRenningsK. Determinants of eco-innovations by type of environmental impact - The role of regulatory push/pull, technology push and market pull. Ecol Econ2012; 78: 112–122.
21.
LilliestamJPattABersalliG. The effect of carbon pricing on technological change for full energy decarbonization: a review of empirical ex-post evidence. Wiley Interdiscip Rev Clim Chang2021; 12: e681.
22.
ShaoSHuZCaoJ,et al.Environmental regulation and enterprise innovation: a review. Bus Strateg Environ2020; 29: 1465–1478.
23.
DechezlepretreASatoM. The impacts of environmental regulations on competitiveness. Rev Environ Econ Policy2017; 11: 183–206.
24.
BrunnermeierSBCohenMA. Determinants of environmental innovation in US manufacturing industries. J Environ Econ Manage2003; 45: 278–293.
25.
KnellerRMandersonE. Environmental regulations and innovation activity in UK manufacturing industries. Resour Energy Econ2012; 34: 211–235.
26.
RubashkinaYGaleottiMVerdoliniE. Environmental regulation and competitiveness : empirical evidence on the porter hypothesis from european manufacturing sectors. Energy Policy2015; 83: 288–300.
27.
PasurkaC. Perspectives on pollution abatement and competitiveness: theory, data, and analyses. Rev Environ Econ Policy2008; 2: 194–218.
28.
HilleEAlthammerWDiederichH. Environmental regulation and innovation in renewable energy technologies: does the policy instrument matter?Technol Forecast Soc Change2020; 153: 119921.
29.
WangYSunXGuoX. Environmental regulation and Green productivity growth: empirical evidence on the porter hypothesis from OECD industrial sectors. Energy Policy2019; 132: 611–619.
30.
TestaFIraldoFFreyM. The effect of environmental regulation on firms’ competitive performance: the case of the building & construction sector in some EU regions. J Environ Manage2011; 92: 2136–2144.
31.
BeckerRA. Local environmental regulation and plant-level productivity. Ecol Econ2011; 70: 2516–2522.
32.
BarberaAJMcConnellVD. The impact of environmental regulations on industry productivity: direct and indirect effects. J Environ Econ Manage1990; 18: 50–65.
33.
BoydGAMcClellandJD. The impact of environmental constraints on productivity improvement in integrated paper plants. J Environ Econ Manage1999; 38: 121–142.
34.
ParkY-S. A study on the determinants of environmental innovation in korean energy intensive industry. Int Rev Public Adm2004; 9: 89–101.
35.
YarimeM. Promoting Green innovation or prolonging the existing technology. J Ind Ecol2007; 11: 117–139.
36.
HancevicPI. Environmental regulation and productivity: the case of electricity generation under the CAAA-1990. Energy Econ2016; 60: 131–143.
37.
RubashkinaYGaleottiMVerdoliniE. Environmental regulation and competitiveness: empirical evidence on the porter hypothesis from european manufacturing sectors. Energy Policy2015; 83: 288–300.
38.
BitatA. Environmental regulation and eco-innovation: the porter hypothesis refined. Eurasian Bus Rev2018; 8: 299–321.
39.
LofstedtR. The substitution principle in chemical regulation: a constructive critique. J Risk Res2014; 17: 543–564.
40.
GhosalVStephanAWeissJF. Decentralized environmental regulations and plant-level productivity. Bus Strateg Environ2019; 28: 998–1011.
41.
MengFXuYZhaoG. Environmental regulations, Green innovation and intelligent upgrading of manufacturing enterprises: evidence from China. Sci Rep2020; 10: 1–17.
42.
RamanathanRHeQBlackA,et al.Environmental regulations, innovation and firm performance: a revisit of the porter hypothesis environmental regulations, innovation and firm performance. A Revisit of the Porter Hypothesis Abstract44: 1–36.
43.
BhaskaranS. Incremental innovation and business performance: small and medium-size food enterprises in a concentrated industry environment. J Small Bus Manag2006; 44: 64–80.
44.
PanXChengWGaoY,et al.Is environmental regulation effective in promoting the quantity and quality of Green innovation?Environ Sci Pollut Res2021; 28: 6232–6241.
45.
SongMWangSZhangH. Could environmental regulation and R&D tax incentives affect Green product innovation?J Clean Prod2020; 258: 120849.
46.
TengXLuLCChiuY-H. Energy and emission reduction efficiency of China's Industry sector: a non-radial directional distance function analysis. Carbon Manag2019; 10: 333–347.
47.
FäreRGrifell-TatjéEGrosskopfS, et al.Biased technical change and the malmquist productivity index. Scand J Econ1997; 99: 119–127.
48.
LiuWDuMBaiY. Mechanisms of environmental Regulation's Impact on Green technological progress—evidence from China's Manufacturing sector. Sustainability2021; 13: 1600.
49.
CostantiniVMazzantiM. On the Green and innovative side of trade competitiveness? The impact of environmental policies and innovation on EU exports. Res Policy2012; 41: 132–153.
50.
OzusaglamS. Environmental innovation: a concise review of the literature. Vie Sci l’entreprise2012; 2: 15–38.
51.
HuangJZhaoJCaoJ. Environmental regulation and corporate R&D investment—evidence from a quasi-natural experiment. Int Rev Econ Financ2021; 72: 154–174.
52.
HeGWangSZhangB. Watering down environmental regulation in China. Q J Econ2020; 135: 2135–2185.
53.
KahnMEMansurET. Do local energy prices and regulation affect the geographic concentration of employment?J Public Econ2013; 101: 105–114.
54.
Pereira SánchezÁVence DezaX. Environmental policy instruments and eco-innovation: an overview of recent studies. Innovar2015; 25: 65–80.
55.
GhisettiCMazzantiMMancinelliS, et al.Do financial constraints make the environment worse off? Understanding the effects of financial barriers on environmental innovations. SEEDS Work Pap Ser2015; 19p.
56.
KozlukTZippererV. Environmental policies and productivity growth: a critical review of empirical findings. Oecd J Econ Stud. 20152014; 1: 155–185.
57.
StanleyTDGilesMJohnstonRJ, et al.Meta-analysis of economics research reporting guidelines. J Econ Surv2013; 27: 390–394.
58.
YuanBZhangK. Can environmental regulation promote industrial innovation and productivity ? based on the strong and weak porter hypothesis. Chinese J Popul Resour Environ2017; 15: 322–336.
59.
NoaillyJ. Improving the energy efficiency of buildings: the impact of environmental policy on technological innovation. Energy Econ2012; 34: 795–806.
60.
LiqunZMatthewHRichardF. Can environmental regulations drive firms innovation ? Evidence from Two Policies in ChinaNEBR2017: 1–48.
61.
LucchesiAColeMAElliotRJR, et al.Determinants of environmental innovation in Brazilian manufacturing industries. Proc 42th Encontro Nac Econ da ANPEC2014: 9–12.
62.
CazacheviciAHavranekTHorvathRRemittances and economic growth: a meta-analysis. World Dev2020; 134: 105021.
63.
HavranekTHorvathRZeynalovA. Natural resources and economic growth : a meta-analysis. World Dev2016; 88: 134–151.
64.
AlinaghiNReedWR. Taxes and economic growth in OECD countries: A meta-regression analysis. 2017. Avaiable from http://researcharchive.vuw.ac.nz/handle/10063/6710.
RosenthalR. The file drawer problem and tolerance for null results. Psychol Bull1979; 86: 638.
67.
DoucouliagosCStanleyTD. Are all economic facts greatly exaggerated? Theory competition and selectivity. J Econ Surv2013; 27: 316–339.
68.
StanleyTD. Meta-regression methods for detecting and estimating empirical effects in the presence of publication selection. Oxf Bull Econ Stat2008; 70: 103–127.
69.
HsuA, et al.Global metrics for the environment. The environmental performance Index ranks countries’ performance on high-priority environmental issues. New Haven: CT Yale Univ, 2016, 11–2.
70.
BermanEBuiLTM. Environmental regulation and productivity: evidence from oil refineries. Rev Econ Stat2001; 83: 498–510.
71.
Martínez-ZarzosoIBengochea-moranchoAMorales-lageR, et al.Does environmental policy stringency foster innovation and productivity in OECD countries?Energy Policy2019; 134: 110982.
72.
FrondelMHorbachJRenningsK, et al.What triggers environmental management and innovation? Empirical evidence for Germany. Ecol Econ2014; 66: 153–160.
73.
ZhugeLFreemanRBHigginsMT. Regulation and innovation: examining outcomes in Chinese pollution control policy areas. Econ Model2020; 89: 19–31.
74.
HemmelskampJ. The influence of environmental policy on innovative behaviour: an econometric study. Fond Eni Enrico Mattei Work Pap., 1999, (18.99).
75.
PickmanHA. The effect of environmental regulation on environmental innovation. Bus Strateg Environ1998; 7: 223–233.
76.
JaffeABPalmerK. Environmental regulation and innovation: a panel data study. Rev Econ Stat1997; 79: 610–619.
77.
DemirelPKesidouE. Stimulating different types of eco-innovation in the UK: government policies and firm motivations. Ecol Econ2011; 70: 1546–1557.
78.
SrinivasanS, et al.Driven up the wall? Role of environmental regulation in innovation along the automotive global value chain. 2017.
79.
StuckiTWoerterMArvanitisS,et al.How different policy instruments affect green product innovation: A differentiated perspective. Energy Policy2018; 114: 245–261.
80.
VonaFNicolliFNestaL, et al.Determinants of renewable energy innovation: environmental policies vs. market regulation. Doc Trav l’OFCE2012; 5: 1–48.
81.
RaveTGoetzkeFLarchM. The determinants of environmental innovations and patenting: Germany reconsidered. 2011. Available from https://www.econstor.eu/handle/10419/73719.
82.
PoppD. Lessons from patents: using patents to measure technological change in environmental models. Ecol Econ2005; 54: 209–226.
83.
ManagiSOpaluchJJJinD, et al.Environmental regulations and technological change in the offshore oil and gas industry. Land Econ2005; 81: 303–319.
84.
FabriziAGuariniGMelicianiV. Green patents, regulatory policies and research network policies. Res Policy2018; 47: 1018–1031.
85.
LiuJRanM, et al.Effect of the intensity of environmental regulation on production technology progress in 17 industries: evidence from China. Pol J Env Stud2014; 23: 2071–2081.
86.
WeissJFAnisimovaT. The innovation and performance effects of well- designed environmental regulation: evidence from Sweden. Ind Innov. 2019;2716:1–34.
87.
PoppD. Pollution control innovations and the clean Air Act of 1990. J Policy Anal Manag2003; 22: 641–660.
88.
DemirelPKesidouE. Stimulating different types of eco-innovation in the UK: government policies and firm motivations. Ecol Econ2011; 70: 1546–1557.
89.
HavranekTIrsovaZ. Do borders really slash trade? A meta-analysis. IMF Econ Rev2017; 65: 365–396.
90.
ZigraiovaDHavranekT. Bank competition and financial stability: much ado about nothing?J Econ Surv2016; 30: 944–981.
91.
SteelMFJ. Model averaging and its use in economics. J Econ Lit2020; 58: 644–719.
92.
ClydeMGeorgeEI. Model uncertainty. Stat Sci2004; 19: 81–94.
93.
HavránekT. Measuring intertemporal substitution: the importance of method choices and selective reporting. J Eur Econ Assoc2015; 13: 1180–1204.
94.
HavranekTIrsovaZZeynalovaO. Tuition fees and university enrolment: a meta-regression analysis. Oxf Bull Econ Stat.2018; 80: 1145–1184.
95.
HavranekTHorvathRIrsovaZ, et al.Cross-country heterogeneity in intertemporal substitution. J Int Econ2015; 96: 100–118.
96.
FeldkircherMZeugnerS. Benchmark priors revisited: on adaptive shrinkage and the supermodel effect in Bayesian model averaging. International Monetary Fund, 2009.
97.
DoucouliagosHC. How large is large? Preliminary and relative guidelines for interpreting partial correlations in economics. 2011. Available from https://ideas.repec.org/p/dkn/econwp/eco_2011_5.html.
98.
EicherTSPapageorgiouCRafteryAE. Default priors and predictive performance in Bayesian model averaging, with application to growth determinants. J Appl Econom2011; 26: 30–55.
99.
JeffreysH. Theory of probability. Oxford: Clarendon, 1961.
100.
AnalysisAMHamplMHavranekT, et al.Foreign capital and domestic productivity in the Czech Republic : 2019;1–21. Available from https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3331987.
101.
GechertSHavranekTIrsovaZ, et al.Death to the cobb-douglas production function. 2019;1–50. Available from https://www.econstor.eu/handle/10419/206805.
102.
FernandezCLeyESteelMFJ. Benchmark priors for Bayesian model averaging. J Econom2001; 100: 381–427.
103.
PoppDPoppD. Environmental policy and innovation: A decade of research david. 2019. Available from https://www.nber.org/papers/w25631.
104.
PoppDNewellRGJaffeAB. Energy, the environment, and technological change. Handbook of the Economics of Innovation2010; 2: 873–937.
105.
AroraSCasonTN. An experiment in voluntary environmental regulation: participation in EPA′ s 33/50 program. J Environ Econ Manage1995; 28: 271–286.
106.
DufloEGreenstoneMPandeR, et al.The value of regulatory discretion: estimates from environmental inspections in India. Econometrica2018; 86: 2123–2160.
107.
FuTJianZ. Corruption pays off: how environmental regulations promote corporate innovation in a developing country. Ecol Econ2021; 183: 106969.
108.
SokołowskiMM. Regulation in the COVID-19 pandemic and post-pandemic times: day-watchman tackling the novel coronavirus. Transform Gov People, Process Policy2020.
109.
Gomez-mejiaLR. Necessity as the mother of ‘Green’inventions: institutional pressures and environmental innovations. Strateg Manag J2013; 909: 891–909.
110.
RamanathanRBlackANathP. Impact of environmental regulations on innovation and performance in the UK industrial sector. Manag Decis2010; 48: 1493–1513.
111.
TangR. Environmental regulation and firm innovation: evidence from China. Work Pap2015: 1–40.
112.
JiangZWangZLiZ. The effect of mandatory environmental regulation on innovation performance: evidence from China. J Clean Prod. 2018; 203: 482–491.
113.
StanleyTDDoucouliagosH. Meta-regression analysis in economics and business. London: Routledge, 2012.
114.
DuKChengYYaoX. Environmental regulation, Green technology innovation, and industrial structure upgrading: the road to the Green transformation of Chinese cities. Energy Econ2021; 98: 105247.
Supplementary Material
Please find the following supplemental material available below.
For Open Access articles published under a Creative Commons License, all supplemental material carries the same license as the article it is associated with.
For non-Open Access articles published, all supplemental material carries a non-exclusive license, and permission requests for re-use of supplemental material or any part of supplemental material shall be sent directly to the copyright owner as specified in the copyright notice associated with the article.
