Does environmental regulation inhibit enterprise performance? Evidence from listed energy firms in China

This paper investigates the relationship between Command and Control Regulation (CER), Market Incentive Environmental Regulation (MER), Technological Innovation (TIL) and energy enterprise performance, focusing on the case of China. It argues that: 1) the impact of various environmental regulations on energy firms is not uniform, with CER having a significant negative effect while Market Incentive Environmental Regulation (MER) has no notable direct impact; 2) the level of TIL at energy firms contributes to regulating the effect of CER and MER on their performance; and (3) TIL has a double threshold effect in the impact of MER on energy firm performance, with a significantly negative impact in the first interval, no significant impact in the second interval, and a significantly positive impact in the third interval. In conclusion, considering the diverse TIL of energy firms, optimizing the design of environmental regulations is crucial in promoting energy transformation strategy.