A Literature Review on Environmental Regulation and Green Technological Innovation

Abstract

China’s rapid industrialization has generated substantial economic growth while simultaneously intensifying environmental pollution and ecological degradation, posing significant challenges to sustainable development. As a major source of emissions, the manufacturing sector is at the core of China’s low-carbon transition, where green technological innovation plays a pivotal role.However, existing studies have largely examined these regulatory instruments in isolation, with limited attention to their joint effects and interactive mechanisms.This study develops an integrated analytical framework encompassing command-and- control, market-based, and public-participation environmental regulations, and employs an evolutionary game model to examine strategic interactions among governments, manufacturing enterprises, and the public. The analysis further incorporates central–local government coordination, pollution co-governance among small and medium-sized enterprises within supply chains, and the mediating role of public participation in modern environmental governance. The results indicate that appropriately designed combinations of regulatory intensity, economic incentives, and public supervision can jointly promote firms’ green technological innovation, while excessive regulatory pressure may inhibit innovation by increasing compliance costs and financial constraints. Moreover, coordinated governance mechanisms and supply chain collaboration significantly enhance the effectiveness of environmental regulation in driving green transformation.