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Can green industrial policy promote green innovation in heavily polluting enterprises? Evidence from China

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  • Zhu, Zhaohui
  • Tan, Yafei

Abstract

Although synergies of economic and environmental development are a central global concern, there has been limited empirical research on the effectiveness of green industrial policy at the enterprise level in developing countries. This article demonstrates the impact of China’s green industrial policy on green innovation based on evidence related to Chinese listed companies in heavily polluting industries against the backdrop of China’s Five-Year Plans context from 2011 to 2020. It finds that green industrial policy promotes green innovation among enterprises through the mediating roles of government subsidies and bank loans. Notably, this effect is more significant for enterprises that are state-owned and located in Eastern China. The findings offer guidance for developing countries on how to implement green industrial policy to stimulate green innovation.

Suggested Citation

  • Zhu, Zhaohui & Tan, Yafei, 2022. "Can green industrial policy promote green innovation in heavily polluting enterprises? Evidence from China," Economic Analysis and Policy, Elsevier, vol. 74(C), pages 59-75.
    • Handle: RePEc:eee:ecanpo:v:74:y:2022:i:c:p:59-75
    DOI: 10.1016/j.eap.2022.01.012
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    2. Qin, Shufeng & Xiong, Yongqing, 2022. "Innovation strategies of Chinese new energy vehicle enterprises under the influence of non-financial policies: Effects, mechanisms and implications," Energy Policy, Elsevier, vol. 164(C).
    3. Chunrong Yan & Xintian Xiang & Liping Li & Guoxiang Li, 2023. "Environmental Credit Constraints and the Enterprise Choice of Environmental Protection Behavior," Sustainability, MDPI, vol. 15(24), pages 1-24, December.
    4. Song, Yang & Zhang, Zhiyuan & Sahut, Jean-Michel & Rubin, Ofir, 2023. "Incentivizing green technology innovation to confront sustainable development," Technovation, Elsevier, vol. 126(C).
    5. Jie Zhang & Shilong Li, 2023. "The Impact of Human Capital on Green Technology Innovation—Moderating Role of Environmental Regulations," IJERPH, MDPI, vol. 20(6), pages 1-19, March.
    6. Qiong Xu & Xin Li & Fei Guo, 2023. "Digital transformation and environmental performance: Evidence from Chinese resource‐based enterprises," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(4), pages 1816-1840, July.
    7. Kaifeng Li & Yun Chen & Jingren Chen, 2023. "How to Improve Industrial Green Total Factor Productivity under Dual Carbon Goals? Evidence from China," Sustainability, MDPI, vol. 15(11), pages 1-13, June.
    8. Chen, Zan & Jin, Jun & Li, Meng, 2022. "Does media coverage influence firm green innovation? The moderating role of regional environment," Technology in Society, Elsevier, vol. 70(C).
    9. Florackis, Chris & Fu, Xi & Wang, Jingjing, 2023. "Political connections, environmental violations and punishment: Evidence from heavily polluting firms," International Review of Financial Analysis, Elsevier, vol. 88(C).
    10. Tao, Chang-Qi & Yi, Meng-Ying & Wang, Chang-Song, 2023. "Coupling coordination analysis and Spatiotemporal heterogeneity between data elements and green development in China," Economic Analysis and Policy, Elsevier, vol. 77(C), pages 1-15.
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    12. Liu, Ting & Quan, Lei & Gao, Xing, 2023. "Social dishonesty and corporate green innovation," Economic Analysis and Policy, Elsevier, vol. 79(C), pages 967-985.

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    More about this item

    Keywords

    Green industrial policy; Green innovation; Government subsidies; Bank loans;
    All these keywords.

    JEL classification:

    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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