The impact of environmental regulatory instruments on agribusiness technology innovation—A study of configuration effects based on fsQCA

Abstract

This paper investigates the complex causal relationships between various types of environmental regulatory instruments (ERI) and agri-firms’ technological innovation employing fuzzy set qualitative comparative analysis (fsQCA). The study finds a well-designed set of ERI can promote technological innovation in agribusiness; control-command ERI cannot promote technological innovation in agribusiness solely, market-incentivized ERI is indispensable in promoting firms’ innovation performance, implicit ERI plays an important role in promoting firms’ innovation and voluntary ERI does not play a significant role in promoting firms’ technological innovation. The government should coordinate among various types of ERI and improve the design of ERI to achieve a win-win situation for both economic and environmental performance in the agriculture sector.