Optimal Choice of Environmental Policy Instrument Based on Enterprises' Incentive to Technology Innovation: An Empirical Study Using Ordered Logit Model and Models for Count Data

Abstract

This empirical study investigates the optimal choice of environmental policy instruments based on enterprises' incentives for technology innovation. Drawing upon insights from environmental economics, innovation studies, and policy analysis, the research examines how different types of environmental policy instruments, such as carbon taxes, emissions trading schemes, and regulatory standards, influence firms' decisions to invest in technology innovation for environmental improvement. Through the application of ordered logit models and models for count data, the study analyzes survey data collected from a sample of enterprises to assess the relationship between the choice of environmental policy instrument and firms' propensity to engage in technology innovation activities. It explores how factors such as firm size, industry characteristics, technological capabilities, and regulatory environments interact to shape firms' responses to environmental policy incentives. The findings offer insights into the effectiveness of various policy instruments in stimulating technology innovation for environmental sustainability and provide guidance for policymakers and regulators seeking to design and implement environmentally effective and economically efficient policy interventions. By employing advanced econometric techniques, this research contributes to a deeper understanding of the complex dynamics between environmental policy, technology innovation, and firm behavior.