Be Green to Be Innovative: The Role of Government Subsidies

Green innovation is vital for manufacturing enterprises to achieve a balance between economic, environmental and social benefits. This paper empirically investigates the mechanisms of government subsidies, R&D investment and public participatory environmental regulation on green innovation in manufacturing enterprises, selecting a sample of 1308 manufacturing firms listed on Chinese A-shares from 2010–2019. The results show that government subsidies can significantly promote green innovation in manufacturing enterprises, with private enterprises being more pronounced. R&D investment plays a mediating role in green innovation in manufacturing enterprises, while public participatory environmental regulation has a negative impact. The moderating effect of public participatory environmental regulation on government subsidies is different on different green patents, with a more negative effect on green invention patents than on green utility model patents. Public participatory environmental regulation has a negative moderating effect on the green innovation of state-owned manufacturing enterprises while having no significant effect on private manufacturing enterprises.

Section: Model Constructionmentioning

confidence: 99%

Promote Green Innovation in Manufacturing Enterprises in the Aspect of Government Subsidies in China

Tang

2022

“…To identify the mechanism of the role of LGD in inhibiting urban GTFP (Hypothesis 2), we constructed the mediating effect model, as follows, referring to the literature [40][41][42]:…”

Section: Mediating Effect Modelmentioning

confidence: 99%

Local Government Debt and Green Total Factor Productivity—Empirical Evidence from Chinese Cities

Mao

Failler

2022

In recent years, the expansion of local government debt (LGD) in China has caused widespread concern. Enhancing green total factor productivity (GTFP) is an important way to coordinate resources, environment, and regional development and is an important indicator to realize the transformation of green economic development. Scientific assessment of the impact of LGD on GTFP helps promote the transformation of green economic development. This paper selects sample data from 271 cities in China from 2010 to 2019 and empirically investigates the mechanisms of LGD, green innovation, and financial market development on GTFP. The results show that (1) LGD expansion significantly suppresses GTFP in China; (2) green innovation mediates between the two, and LGD suppresses GTFP by reducing the level of green innovation; and (3) financial market development can mitigate the negative impact of LGD on urban GTFP. Therefore, the governance of LGD should be strengthened, the financial market environment should be optimized, the distortion of financial resources should be corrected, and innovative financing modes such as green finance and green credit should be encouraged to enhance GTFP.

“…Furthermore, to test whether CPU affects the enterprise’s GI through the enterprise’s financing constraints (Hypothesis 2). Refer to [ 52 , 53 , 54 ], we construct the mediating effects model as follows:

where

represents enterprise financing constraints in enterprise

in year

. Our study concentrates on the coefficients

and

.…”

Section: Empirical Model and Methodologymentioning

confidence: 99%

How Does Climate Policy Uncertainty Affect Green Innovation? Evidence from China

Mao

Huang

2022

In response to climate change, governments have adopted various climate policies. However, climate policy uncertainty (CPU) may have important implications for the business sector. Is enterprise green innovation (GI) affected by CPU? This study investigates the impact of CPU on enterprise GI. The China CPU index is created first in this study. It uses panel data from Chinese A-share listed companies in China from 2010 to 2021 to explore the impact of CPU on GI through the fixed effects model, the mediating effects model, and the moderating effects model. The results show that: (1) CPU significantly suppresses GI, according to the findings. (2) CPU inhibits enterprise GI by exacerbating enterprise financing constraints. (3) Government subsidies can mitigate the inhibiting effect of CPU on GI. (4) There is heterogeneity in the negative impact of CPU on enterprise GI, mainly on non-state-owned enterprises. This study suggests several recommendations for coping with CPU in China.