Can Environmental Regulatory Policies Promote Green Technology Innovation of Enterprises?

Based on China's Carbon Trading Pilot Policy

Authors

  • Huangrui Yan
  • Ziming Lin
  • Jiesi Yang

DOI:

https://doi.org/10.6981/FEM.202411_5(11).0021

Keywords:

Carbon Trading Policy Pilots; Corporate Green Innovation; Financing Constraints; R&D Investment.

Abstract

Carbon trading, encompassing greenhouse gas emissions trading, leverages market mechanisms to address emissions of carbon dioxide and other greenhouse gases. This study utilizes panel data from Chinese listed firms spanning 2009 to 2023 and applies the Difference-in-Difference (DID) panel model along with the mediation effect model to examine the impact of China’s carbon emission trading pilot policy on firms' green innovation. The findings indicate that the carbon trading policy positively influences enterprises' green technological innovation. From the perspective of enterprise type, the policy significantly promotes green technological innovation in state-owned enterprises. Regionally, the policy is particularly effective in encouraging green technological innovation among enterprises in central and western China. The implementation of the carbon trading pilot facilitates green technological innovation by alleviating financing constraints faced by enterprises.

Downloads

Download data is not yet available.

References

[1] Cornaggia, J., Mao, Y., Tian, X., & Wolfe, B. (2015). Does banking competition affect innovation?. Journal of financial economics, 115(1), 189-209.

[2] Cunningham, P. H. (2011). State-owned enterprises: Pursuing responsibility in corporate social responsibility. Management Communication Quarterly, 25(4), 718-724.

[3] Hall, B. H., & Lerner, J. (2010). The financing of R&D and innovation. In Handbook of the Economics of Innovation (Vol. 1, pp. 609-639). North-Holland.

[4] Kowalski, P., Büge, M., Sztajerowska, M., & Egeland, M. (2013). State-owned enterprises: Trade effects and policy implications.

[5] Luo, S., & He, G. (2022). Research on the influence of emission trading system on enterprises' green technology innovation. Discrete Dynamics in Nature and Society, 2022(1), 1694001.

[6] Luo, Y., Xiong, G., & Mardani, A. (2022). Environmental information disclosure and corporate innovation: The “Inverted U-shaped” regulating effect of media attention. Journal of Business Research, 146, 453-463.

[7] Miao, M., Su, Y., Zhu, X., Jiang, Y., & Zhang, H. (2019). The Influence of Environmental Regulation on Corporate Technological Innovation-Based on the Test of Mediating Effect of Financing Constraints. Soft Science, 33(12), 100-107.

[8] Pu, S., & Ouyang, Y. (2023). Can carbon emission trading policy promote green innovation? The perspective of corporate operating difficulties. Journal of Cleaner Production, 420, 138473.

[9] Shi, X., & Xu, Z. (2018). Environmental regulation and firm exports: Evidence from the eleventh Five-Year Plan in China. Journal of Environmental Economics and Management, 89, 187-200.

[10] Shen, H., Dai, Y., & Zhang, J. (2018). Carbon emission trading mechanism and carbon transparency of enterprises. Financ. Account. Mon, 1, 151-161.

[11] Wang, C., & Wang, H. (2024). Can the environmental trading enhance corporate green innovation efficiency?. Finance Research Letters, 62, 105251.

[12] Wang, T., Song, Z., Zhou, J., Sun, H., & Liu, F. (2022). Low-carbon transition and green innovation: evidence from pilot cities in China. Sustainability, 14(12), 7264.

[13] Xu, B. Y., & Liu, X. H. (2022). Research on the Carbon Emission Effect of Import and Export Trade on the Primary Industry: A Threshold Test Based on Provincial R&D Input Data in China. On Economic Problems, 2, 27-33.

[14] Zhang, Y., Li, S., Luo, T., & Gao, J. (2020). The effect of emission trading policy on carbon emission reduction: Evidence from an integrated study of pilot regions in China. Journal of Cleaner Production, 265, 121843.

Downloads

Published

2024-11-11

Issue

Section

Articles

How to Cite

Yan, Huangrui, Ziming Lin, and Jiesi Yang. 2024. “Can Environmental Regulatory Policies Promote Green Technology Innovation of Enterprises? Based on China’s Carbon Trading Pilot Policy”. Frontiers in Economics and Management 5 (11): 213-26. https://doi.org/10.6981/FEM.202411_5(11).0021.