The Impact of Environmental Regulation and International Trade Rule Coordination on Corporate Innovation

Xiaotong Yang

doi:10.54254/2754-1169/2025.LD25526

Advances in Economics, Management and Political SciencesOpen access

The Impact of Environmental Regulation and International Trade Rule Coordination on Corporate Innovation

Research Article

Open Access

The Impact of Environmental Regulation and International Trade Rule Coordination on Corporate Innovation

Xiaotong Yang ^1*

¹ Northwest Agriculture and Forestry University

^*Corresponding author: 1831899452@qq.com

Published on 30 July 2025

AEMPS Vol.206

ISSN (Print): 2754-1177

ISSN (Online): 2754-1169

ISBN (Print): 978-1-80590-295-9

ISBN (Online): 978-1-80590-296-6

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Abstract

Based on environmental and international trade data from 40 countries, this study constructs a Policy Synergy Index for environmental regulations and international trade rules. Using regression models, it examines the synergistic impact of these regulations on corporate innovation. Findings reveal a measurable synergistic effect, primarily manifested as a linear relationship between the synergy index and patent output. From a governmental perspective, the paper proposes: (1) establishing an international coordination mechanism through multilateral platforms like the WTO to advance mutual recognition of carbon tariffs, green technology standards, and environmental goods lists, thereby reducing corporate dual compliance costs; (2) implementing innovation-oriented policies that dynamically link the Environment-Trade Synergy Index with tax incentives, while creating a cross-border green technology transfer fund to accelerate innovation diffusion. Tiered policy tools should target developed countries (technical standard mutual recognition), emerging economies (compliance capacity building), and least-developed countries (green assistance). Progress should be monitored through a globally unified accounting system for synergy indices. Governments must pre-assess policy international compatibility, while enterprises should strengthen full-chain compliance management, ultimately achieving dual wins in green trade expansion and global carbon emission reduction.

Keywords:

Environmental regulation, Corporate innovation, Coupled co scheduling

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References

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[4]. Zhanpeng Z , Yarou W , Xiaotian L , et al. A Study of the Threshold Effect of Environmental Regulation on Technological Innovation. [J]. Economic Survey, 2022, 39(06): 14-23.

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References

[1]. Yi Z , Qi G , Donghan Z . Environmental Regulation and Product Mix of Firm—Evidence from Multi-product Exporters in China. [J]. China Industrial Economics, 2022, (06): 117-135.

[3]. Ting L , Qiyuan X . Are the Green TBTs a Stimulus or a Trap for Firms' Green Technology Development? [J]. Finance & Trade Economics, 2023, 44(12): 140-157.

[4]. Zhanpeng Z , Yarou W , Xiaotian L , et al. A Study of the Threshold Effect of Environmental Regulation on Technological Innovation. [J]. Economic Survey, 2022, 39(06): 14-23.

[5]. Zhanghe L .Research on the impact of environmental regulations on the flow of green innovation elements. [D]. Journal of Jiangxi University of Finance and Economics, 2024.

Cite this article

Yang,X. (2025). The Impact of Environmental Regulation and International Trade Rule Coordination on Corporate Innovation. Advances in Economics, Management and Political Sciences,206,42-52.

Data availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

About volume

Volume title: Proceedings of ICEMGD 2025 Symposium: Digital Transformation in Global Human Resource Management

ISBN: 978-1-80590-295-9(Print) / 978-1-80590-296-6(Online)

Editor: Florian Marcel Nuţă Nuţă, An Nguyen

Conference website: https://www.icemgd.org/committee.html

Conference date: 26 September 2025

Series: Advances in Economics, Management and Political Sciences

Volume number: Vol.206

ISSN: 2754-1169(Print) / 2754-1177(Online)

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