Environmental innovation and human capital: an environmental regulation choice for a carbon-neutral economy

Abstract

In recent years, the global environmental landscape has experienced significant shifts, with the need for cleaner, more sustainable energy sources becoming increasingly evident. This transformation is especially apparent in China, where environmental innovation is considered the important influential intensity of the green economy. It has been recognized as a fundamental driver of green growth. Thus, this study anticipates a link between human capital, environmental innovation and environmental regulation by applying the QARDL estimation technique. The findings inferred that human capital, both in the long and short run, positively enhances Chinese ecological innovation. Environmental regulations create an enhancement in short-run environmental innovation. Based on estimation results, the policy suggestions to be put forward; the government has to spend more on education, boost the development of high-level human capital, focus on the emergence of high talents, and support talent promotion methods.