Government innovation support for green development efficiency in China: A regional analysis of key factors based on the dynamic GMM model

Abstract

Local government innovation support (LGIS) is an exogenous pulling force for high-quality economic development. Accurately identifying the mechanism by which LGIS affects green development remains practically and theoretically significant for building a long-term framework for driving green development. Based on provincial panel data (2010–2019), this paper uses the Super-SBM model to measure the green development efficiency (GDE) of different provinces in China. A dynamic panel GMM model is constructed to evaluate the significant relationship between LGIS and GDE and to explore the potential impact mechanism of other key factors such as fixed asset investment (FAI), environmental regulation (ER), industrial structure (IS), and foreign direct investment (FDI) on GDE. The estimation showed that LGIS had a positive impact on GDE. The data analysis indicated that GDE in the lag period significantly affected the GDE in the current period. More so, as per the results, the promoting effect of GDE in the second lag period gradually weakened due to the decline of LGIS and ER restrictions. The current model also revealed that FAI and ER inhibited the GDE progress, while IS and FAI had improved the state of GDE in the region. The research findings imply that China should further increase the government innovation expenditure, FDI utilization, and IS upgrade to promote high-quality economic development.

An assessment of the green innovation, environmental regulation, energy consumption, and CO2 emissions dynamic nexus in China: Fresh insights based on the GMM model

“…A study by Erdoğan et al (2020) for G20 countries found that the continuous increase in innovation expenditure in the industrial sector has had a signi cantly inhibiting implication on CO 2 emissions. In line with the ndings of Khattak et al (2022), government innovation support can reduce CO 2 emissions and improve green development e ciency in China. On the contrary, using the CCEMG estimation technique, Khattak et al (2020) examined complex in uences on carbon emissions in BRICS countries and found that innovative activities had a mitigating effect, but only on Brazil's CO 2 emissions.…”

Fiscal and Tax Policies, Access to External Financing and Green Innovation Efficiency: An Evaluation of Chinese Listed Firms

“…The Chinese government has exercised its financial and regulatory authority when allocating resources such as government grants, tax relief, innovation funds and license issues, actively encouraging innovation [11,12]. Among these government interventions, subsidies and tax incentives are the most significant for the state to foster domestic innovation and guide the economy's sustainable growth [13,14].…”