Environmental innovation and green low-carbon transitions: The moderating role of green regulatory pressure

Environmental innovation is widely recognized as a key driver of sustainability, reducing greenhouse gas emissions and enhancing resource efficiency. However, the mechanisms through which it contributes to green low-carbon transitions remain underexplored, particularly in the context of varying regulatory environments. This study examines the relationship between environmental innovation and green low-carbon transitions, focusing on the moderating role of green regulatory pressure. Using panel data from 277 prefecture-level cities in China between 2012 and 2021, the analysis reveals that environmental innovation significantly advances green low-carbon transitions, demonstrating its transformative potential in driving sustainable economic development. However, green regulatory pressure negatively moderates this relationship, diminishing the positive effects of environmental innovation. These findings underscore the dual-edged nature of green regulatory pressure, highlighting how excessive regulatory intensity can constrain innovation effectiveness. By providing a comprehensive analysis of the interaction between environmental innovation and regulation, this study offers actionable insights for optimizing environmental policies and addresses critical research gaps, particularly in the context of emerging economies.