An Exploration of the Impact of Environmental Regulation on the Development of Green Technological Innovation: Based on the Moderating Effects of Green Finance and Executives' Green Perception

Amid escalating global climate and environmental challenges, the imperative of sustainable development has spurred academic interest in the nexus between environmental regulation and green technology innovation (GTI). This study meticulously examines how environmental regulation influences GTI, considering the moderating roles of green finance and executives' green perception (EGP). Using advanced econometric techniques, including the double fixed-effects model, we find that environmental regulation has a significant positive impact on GTI. Green finance serves as a catalyst, reducing GTI R&D risks and costs, while EGP aligns firms' strategies with sustainable innovation. We highlight the need for tailored policy approaches due to varying regulatory impacts across sectors, regions, and business life cycles. Key transmission mechanisms, such as alleviating financial constraints and enhancing corporate ESG performance, indirectly support GTI. These findings inform policy recommendations to optimize environmental regulation, bolster green finance, and enhance EGP, fostering sustainable development and economic green transition.