IDEAS home Printed from https://ideas.repec.org/a/eee/epplan/v111y2025ics014971892500059x.html

Can government procurement drive corporate green technology innovation? Evidence from Chinese listed companies

Author

Listed:
  • Tang, Liang
  • Zhao, Hengkai
  • Zhou, Zhuofan
  • Qian, Zixi
  • Hou, Shanshan
  • Liu, Bo

Abstract

Examining the impact of public procurement mechanism government procurement systems on corporate green technology innovation from a demand-side perspective has become a critical issue for encouraging green innovation in enterprises. Using empirical data from Shanghai and Shenzhen A-share listed companies from 2015 to 2023, this study employs a dual fixed-effect model to test the effects of government purchase behavior on green technology innovation. The findings indicate that government procurement significantly promotes green technology innovation in enterprises. Mechanism analysis reveals that public procurement activity fosters green technology innovation by easing financing constraints, strengthening market competitiveness, improving ESG quality and goodwill image. The heterogeneity analysis indicates that the incentive effect of this system is particularly pronounced among enterprises with weak internal controls, state-owned enterprises, and low-growth enterprises. Further research indicates that executive myopia diminishes the innovation-driven impact of government procurement. This study contributes a novel perspective on how government procurement can enhance enterprises' green technology innovation. Additionally, the findings reveal that executive myopia serves as a negative moderating factor in this process.

Suggested Citation

  • Tang, Liang & Zhao, Hengkai & Zhou, Zhuofan & Qian, Zixi & Hou, Shanshan & Liu, Bo, 2025. "Can government procurement drive corporate green technology innovation? Evidence from Chinese listed companies," Evaluation and Program Planning, Elsevier, vol. 111(C).
    • Handle: RePEc:eee:epplan:v:111:y:2025:i:c:s014971892500059x
    DOI: 10.1016/j.evalprogplan.2025.102592
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S014971892500059X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.evalprogplan.2025.102592?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Yan, Kai & Zhang, Ziyi & Yang, Lisi & Cao, Yuqiang & Shan, Yaowen, 2024. "Capital generates green: Evidence from China's national innovation system policy," International Review of Financial Analysis, Elsevier, vol. 91(C).
    2. Sun, Chuanwang & Khan, Anwar & Cai, Weiyi, 2024. "The response of energy aid and natural resources consumption in load capacity factor of the Asia Pacific emerging countries," Energy Policy, Elsevier, vol. 190(C).
    3. Dai, Xiaoyong & Li, Yanchao & Chen, Kaihua, 2021. "Direct demand-pull and indirect certification effects of public procurement for innovation," Technovation, Elsevier, vol. 101(C).
    4. Han, Yingwei & Li, Jie, 2022. "Should investors include green bonds in their portfolios? Evidence for the USA and Europe," International Review of Financial Analysis, Elsevier, vol. 80(C).
    5. Guoyou Qi & Hailiang Zou & Xuemei Xie, 2020. "Governmental inspection and green innovation: Examining the role of environmental capability and institutional development," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(4), pages 1774-1785, July.
    6. Hwan Joo Seo & Sung Jin Kang & Yong Jun Baek, 2020. "Managerial myopia and short-termism of innovation strategy: Financialisation of Korean firms," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 44(6), pages 1197-1220.
    7. Edler, Jakob & Yeow, Jillian, 2016. "Connecting demand and supply: The role of intermediation in public procurement of innovation," Research Policy, Elsevier, vol. 45(2), pages 414-426.
    8. Czarnitzki, Dirk & Hanel, Petr & Rosa, Julio Miguel, 2011. "Evaluating the impact of R&D tax credits on innovation: A microeconometric study on Canadian firms," Research Policy, Elsevier, vol. 40(2), pages 217-229, March.
    9. Roy Rothwell, 1984. "Creating a Regional Innovation-Oriented Infrastructure: The Role of Public Procurement," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 55(2), pages 159-172, April.
    10. Liao, Zhongju & Xu, Lijun & Zhang, Mengnan, 2024. "Government green procurement, technology mergers and acquisitions, and semiconductor firms’ environmental innovation: The moderating effect of executive compensation incentives," International Journal of Production Economics, Elsevier, vol. 273(C).
    11. Zhang, Dandan & Liu, Bo & Liu, Pengfei & Wang, Zeyu, 2025. "Accounting and system dynamics simulation of water resource liabilities in the Yangtze River Economic Zone, China," Evaluation and Program Planning, Elsevier, vol. 111(C).
    12. Liu, Baoliu & Cifuentes-Faura, Javier & Ding, Chante Jian & Liu, Xiaoqian, 2023. "Toward carbon neutrality: How will environmental regulatory policies affect corporate green innovation?," Economic Analysis and Policy, Elsevier, vol. 80(C), pages 1006-1020.
    13. Chenggang Wang & Tiansen Liu & Danli Du & Yue Zhu & Zuolong Zheng & Hanchen Li, 2024. "Impact of the Digital Economy on the Green Economy: Evidence from China," Sustainability, MDPI, vol. 16(21), pages 1-24, October.
    14. Shang, Hua & Jiang, Li & Pan, Xianyou & Pan, Xiongfeng, 2022. "Green technology innovation spillover effect and urban eco-efficiency convergence: Evidence from Chinese cities," Energy Economics, Elsevier, vol. 114(C).
    15. Hu, Baiye & Hong, Gang, 2023. "Management equity incentives, R&D investment on corporate green innovation," Finance Research Letters, Elsevier, vol. 58(PD).
    16. Ullah, Saif & Nobanee, Haitham & Iftikhar, Huma, 2023. "Global financial integration, governance-by-technology, and green growth," International Review of Financial Analysis, Elsevier, vol. 90(C).
    17. Liu, Yang & Dong, Jiuyu & Mei, Liang & Shen, Rui, 2023. "Digital innovation and performance of manufacturing firms: An affordance perspective," Technovation, Elsevier, vol. 119(C).
    18. Sun, Chuanwang & Min, Jialin, 2024. "Dynamic trends and regional differences of economic effects of ultra-high-voltage transmission projects," Energy Economics, Elsevier, vol. 138(C).
    19. Mwesiumo, Deodat & Glavee-Geo, Richard & Olsen, Kjetil Magnus & Svenning, Geir Arne, 2021. "Improving public purchaser attitudes towards public procurement of innovations," Technovation, Elsevier, vol. 101(C).
    20. Li, Qianwen & Qian, Tingyu & Wang, Jiaqi & Long, Ruyin & Chen, Hong & Sun, Chuanwang, 2023. "Social “win-win” promotion of green housing under the four-subject evolutionary game," Energy Economics, Elsevier, vol. 127(PA).
    21. Zhang, Zhaoting & Zhang, Lei, 2024. "Government green procurement policies and corporate green total factor productivity," Finance Research Letters, Elsevier, vol. 65(C).
    22. Ngo, Phong T. H. & Stanfield, Jared, 2022. "Does Government Spending Crowd Out R&D Investment? Evidence from Government-Dependent Firms and Their Peers," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 57(3), pages 888-922, May.
    23. Wang, Danting & Sun, Yemeng, 2025. "Impact of green finance incentive policies on China's carbon neutrality capability: An evaluation based on the difference-in-differences model," Finance Research Letters, Elsevier, vol. 77(C).
    24. Zhongju Liao, 2018. "Corporate culture, environmental innovation and financial performance," Business Strategy and the Environment, Wiley Blackwell, vol. 27(8), pages 1368-1375, December.
    25. Fisman, Raymond & Svensson, Jakob, 2007. "Are corruption and taxation really harmful to growth? Firm level evidence," Journal of Development Economics, Elsevier, vol. 83(1), pages 63-75, May.
    26. Pradhan, Rudra P. & Arvin, Mak B. & Nair, Mahendhiran S. & Bennett, Sara E., 2023. "Does foreign aid affect innovation and institutional quality in middle-income countries?," Evaluation and Program Planning, Elsevier, vol. 100(C).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Shaoxing Sun & Tao Guo & Shaopeng Zhang, 2025. "Guiding corporate green sustainable development: insights from green public procurement," Economic Change and Restructuring, Springer, vol. 58(4), pages 1-22, August.
    2. Li Wang & Hongxuan Wu & Jian Zhang, 2025. "Green Public Procurement and Its Influence on Urban Carbon Emission Intensity: Spatial Spillovers Across 285 Prefectural Cities in China," Land, MDPI, vol. 14(8), pages 1-27, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yang, Fei & Liu, Kang & Wu, Lei & Ren, Yi & Liang, Tian, 2025. "Urban geometry and energy efficiency: Evidence from 282 cities in China," Energy, Elsevier, vol. 319(C).
    2. Xu, Mengmeng & Chen, Can & Zhou, Xiaoshi, 2024. "Enhancing understanding of rebound effect: A novel varying coefficient model for China's industrial sector," Energy, Elsevier, vol. 313(C).
    3. Jia, Xingping & Wang, Jiangzhe & Liu, Tingting, 2024. "The impact of business-to-government relationship emphasis on green innovation: An empirical analysis," Technovation, Elsevier, vol. 129(C).
    4. Wang, Mudan & Xie, Zeyu, 2025. "International trade barriers, export and industrial resilience: An empirical study based on the EU and USA antidumping and countervailing policies on photovoltaic products," Energy Policy, Elsevier, vol. 201(C).
    5. Zheng, Suyi & Wen, Jiandong, 2024. "Green public procurement and corporate environmental performance: An empirical analysis based on data from green procurement contracts," International Review of Economics & Finance, Elsevier, vol. 96(PA).
    6. Wang, Xiaotong & Wang, Yuezhu & Li, Gujie, 2025. "The impact of FDI on the development of China's low-carbon economy in the context of the “Dual Circulation” policy," Economic Analysis and Policy, Elsevier, vol. 86(C), pages 321-335.
    7. Zhang, Zhaoting & Zhang, Lei, 2024. "Government green procurement policies and corporate green total factor productivity," Finance Research Letters, Elsevier, vol. 65(C).
    8. Feng, Yanchao & Yan, Tong & Zhang, Ci & Zhang, Zhenhua & Pan, Yuxi, 2025. "Assessing the internal nexus of energy transition at the global level: Insights from triple aspects of scale, structure, and efficiency," Energy, Elsevier, vol. 320(C).
    9. Xuan, Tao & Cheng, Xusheng & Wang, Liwei, 2025. "Comparative analysis of environmental and economic assessment of batteries for stationary applications," Energy, Elsevier, vol. 334(C).
    10. Qiu, Weijian & Yang, Wenxuan & Qiu, Le, 2025. "Population aging, market competition and enterprise green innovation," Finance Research Letters, Elsevier, vol. 74(C).
    11. Meng Li & Zengrui Tian & Qian Liu & Yuzhong Lu, 2022. "Literature Review and Research Prospect on the Drivers and Effects of Green Innovation," Sustainability, MDPI, vol. 14(16), pages 1-23, August.
    12. Zhao, Jiyang & Wang, Xiaohong, 2025. "Managerial myopia, technological innovation, and greenwashing: Moderating roles of financing constraints and environmental uncertainty," Technological Forecasting and Social Change, Elsevier, vol. 218(C).
    13. Liu, Xiaofeng & Miao, Haoran & Zhou, Wenxiang & Qiu, Yumin, 2024. "The impact of government procurement on green technological innovation: Evidence from manufacturing sector in china," Pacific-Basin Finance Journal, Elsevier, vol. 86(C).
    14. Zhang, Yongji & Lan, Minghui & Zhao, Yapu & Su, Zhi & Hao, Yu & Du, Heran, 2024. "Regional carbon emission pressure and corporate green innovation," Applied Energy, Elsevier, vol. 360(C).
    15. Wang, Chenchen & Liu, Yaobin & Hu, Sheng & Liu, Xuewen, 2024. "Can new digital infrastructure enhance ecological total factor productivity? Evidence from Chinese cities," Economic Analysis and Policy, Elsevier, vol. 84(C), pages 1521-1537.
    16. Dong, Zhenlin & Wang, Junzhi, 2024. "Does public data access stimulate the efficiency of corporate green innovation?," Finance Research Letters, Elsevier, vol. 65(C).
    17. Chen, Jiandong & Li, Yuqing & Xu, Yiyin & Vardanyan, Michael & Shen, Zhiyang & Song, Malin, 2023. "The impact of fiscal technology expenditures on innovation drive and carbon emissions in China," Technological Forecasting and Social Change, Elsevier, vol. 193(C).
    18. Liu, Yaobin & Hu, Sheng & Wang, Chenchen, 2024. "The green innovation spillover effect of enterprise digital transformation: Based on supply chain perspective," Economic Analysis and Policy, Elsevier, vol. 84(C), pages 1381-1393.
    19. Gamze Sart & Yilmaz Bayar & Marina Danilina, 2025. "The Effect of Economic Freedom, Indicators of Financial Sector Development, Income and Education on Renewable Energy Use: An Empirical Analysis of Post-Transition EU Member States," Energies, MDPI, vol. 18(5), pages 1-19, February.
    20. Ye, Ruike & Yang, Xirui & Zhou, Yunheng & Lin, Changfeng & Chen, Yiming & Chen, Jiawei & Bian, Mengying, 2025. "Energy demand security in OPEC+ countries: A revised 4As framework beyond supply security," Energy, Elsevier, vol. 320(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:epplan:v:111:y:2025:i:c:s014971892500059x. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/evalprogplan .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.