A study on the promoting effect of environmental penalties on climate-friendly technological innovation in China.

ABSTRACT: Little exploration of the impact of environmental penalties on climate-friendly technology innovation (CFTI). This paper explores the impact of environmental penalties, set within an institutional context, on the promotion of climate-friendly technological innovation. Employing a qualitative analysis grounded in signaling theory and challenge/threat theory, this study utilizes data from various Chinese cities and applies city- and year-specific two-way fixed effects models to assess the effects of environmental penalties on climate-friendly technological innovations. The findings reveal that environmental penalties have an inverted 'U-shaped' nonlinear effect on such innovations. There is a critical inflection point where environmental penalties shift from promoting to inhibiting these inn

SUBMITTER: Zhang L 

PROVIDER: S-EPMC12533245 | biostudies-literature | 2025 Oct

REPOSITORIES: biostudies-literature