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Environment-related innovations are widely appreciated as a vital factor in achieving sustainable development goals, and stability in the financial sector can help boost the output of environmental innovations by removing financial constraints. Hence, the primary aim of the analysis is to investigate the impact of financial stability on environmental innovation in China by using the QARDL model over the period 1995Q1-2020Q4. The study's main findings confirm the positive role of financial stability on environmental innovation in both the short and long run. Wald test also confirms the asymmetric impact of financial stability on environmental innovation in the short and long run. Moreover, the long-run impacts of GDP, R&D activities, and environmental policy stringency on environmental innovation are positive. In the short run, the estimates of research and development and environmental policy stringency are positively significant at higher quantiles only. Based on the findings, our research will help policymakers to develop valuable policies for financial stability to enhance environmental innovation. [ABSTRACT FROM AUTHOR]

The maturing literature on innovation has recognized the processes of sectoral and technological systems of innovation as helpful frameworks to analyze environmental innovation – a field whose importance continues to grow amidst contemporary regulatory pressures, for example, on maritime industry and shipping. This paper intertwines these key innovation concepts and applies them to classify and systematize an environmental product innovation: marine scrubber systems. The paper also addresses the linkage between innovation policy and environmental regulation and presents an overall framework to visualize and systematize conceptual connections between sectoral and technological systems of innovation to further develop and manage these complex systems of environmental innovation inducement. The paper applies technological and legal materials depicting the context of maritime scrubber systems as technological responses to more rigid environmental regulation by addressing their implications for market potential and change. The results underline the importance of environmental regulations as the driver of the development of technological innovation systems centered on environmental innovation. [ABSTRACT FROM AUTHOR]

Uncertainty in economic policies and regulations incentivizes firms to delay investments in environmental research and developments (R&D) or postpone environmental projects that are costly to undo. A consequence of those decisions is that firms innovate less for the environment. Using 1026 U.S. firm data (equivalent to 13,241 firm-year observations) this study shows that a negative effect of policy uncertainty – a drop in environmental innovation – does not surface in the short term but in the longer term, i.e., in 5–6 years' time. The negative effect, nevertheless, dissipates after six years. These findings are of relevance to other developed countries as well as emerging countries that have a relatively higher uncertainty in their economic policies and regulations. In sum, the results call for attention from governments and regulators around the world: uncertainty in policies and regulations are detrimental to combating climate change and promoting environmental sustainability . [ABSTRACT FROM AUTHOR]