Green innovation and natural resource efficiency: The role of environmental regulations and resource endowment in Chinese cities

Abstract

Achieving natural resource utilization efficiency (NRUE) is a critical objective in addressing the pressing challenges of climate change and the risks associated with the finite availability of mineral resources. Enhancing NRUE can mitigate environmental impacts and support sustainable development for future generations. In this context, green innovation emerges as a pivotal driver of environmental sustainability and resource conservation. However, its potential role in advancing the NRUE has not been fully explored. To fill this gap, this study conducts an empirical analysis of 268 Chinese cities from 2010 to 2022, examining the impact of green innovation on NRUE. This study also incorporates the mediating role of environmental regulations in shaping this impact. The findings demonstrate that green innovation significantly enhances NRUE, primarily by facilitating industrial structural upgrading and reducing resource dependence. Additionally, environmental regulations strengthen the positive effects of green innovation, further amplifying its contribution to NRUE. Moreover, geographical location and differences in resource endowments among cities lead to variations in the effectiveness of green innovation on NRUE. These findings underscore the complex interplay between green technological progress, proactive government policies, and NRUE, offering valuable insights for policymakers and researchers alike.