Analyzing influencing factors of green transformation in China’s manufacturing industry under environmental regulation: A structural equation model

The promotion of the green transformation of the manufacturing industry has become the main means to achieve the dual goals of environmental protection and economic growth. Environmental regulation, as an environment governance tool, exerts an important impact on the green transformation of the manufacturing industry. Therefore, this paper focused on the influencing factors of green transformation of the manufacturing industry under environmental regulation. Based on survey data of 500 Chinese manufacturing enterprises (2017), the influencing factors of green transformation were studied by developing a targeted structural equation model. The main conclusions showed that (1) human capital, financing ability, technology innovation, and government behavior all exerted significant positive impact on green transformation performance in the manufacturing industry. (2) Environmental regulation, as a moderating variable, positively affected the green transformation in the manufacturing industry by acting on technology innovation and governmental behavior; however, it decreased the positive impact of financing ability on green transformation. (3) Environmental regulation was a reversal mechanism, which affected green transformation by influencing financing capacity, technology innovation, and governmental behavior of manufacturing enterprises. The study suggested that the government should consider the positive impact of these influencing factors, and design appropriate environmental regulation policies to promote the green transformation in the manufacturing industry to achieve economic green growth.