Do Heterogeneous Environmental Policies Improve Environmental Quality While Promoting Economic Growth?

The long-standing model of high energy consumption growth China has put the country at a market disadvantage in terms clean technological innovation and goods production. With support national policies, China’s environmental industry achieved rapid development. However, key to establishing long-term effective mechanism is how encourage enterprises develop use green technologies. Thus, we construct theoretical related policies then derive impact heterogeneous on different research development (R&D) approaches. economic effects are explored by incorporating quality into model. Next, evaluate policy effect based panel data prefecture-level cities from 2009 2016. In further discussion, measure decoupling indices carbon emissions for each 281 using Tapio Through derivation empirical analysis, this paper provides more comprehensive study bias policies. results show that can significantly promote regardless R&D approach adopted firms. difference when firms conduct their own R&D, sector’s efficiency parameters determine direction steering. When introduced externally, substitution relationship between sectoral products determines whether effective. Finally, combination regulation government subsidies green-biasing innovation.