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The spatial difference-in-difference measurement of policy effect of environmental protection interview on green innovation

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  • Zeng, Juying
  • Blanco-González-Tejero, Cristina
  • Sendra, F. Javier

Abstract

This study applies the classical difference-in-difference (DID) and spatial difference-in-difference (SDID) approach to measure the policy effect of the mandatory environmental protection interview (EPI) on green innovation with focus on 11,567 industrial manufacturing enterprises in Yangtze River Delta (YRD), China. Overall, the mandatory EPI has significantly promoted green innovation in industrial manufacturing enterprises in YRD by 0.399 units, which is greater than its promotion in green innovation for national industrial enterprises. Industrial manufacturing enterprises tend to increase utility patents more than invention patents under the impact on EPI. A heterogeneity analysis shows that EPI plays a larger role in promoting green innovation for highly polluting enterprises and privately owned enterprises than low polluting enterprises and state-owned enterprises. The innovative application of SDID approach precisely identifies that mandatory EPI has negative and positive effect on green innovation for the interviewed and non-interviewed neighbouring YRD cities. The EPI has a deterrent effect on the non-interviewed cities and stimulates their self-reliance innovation behaviours to realizing green innovation promotion. Except for the highly polluting enterprises with lower government environmental subsidy (GES) tending to purse more GI under EPI, the overall adjustment effect of GES on EPI to have a policy effect is insignificant.

Suggested Citation

  • Zeng, Juying & Blanco-González-Tejero, Cristina & Sendra, F. Javier, 2023. "The spatial difference-in-difference measurement of policy effect of environmental protection interview on green innovation," Technological Forecasting and Social Change, Elsevier, vol. 191(C).
    • Handle: RePEc:eee:tefoso:v:191:y:2023:i:c:s0040162523001968
    DOI: 10.1016/j.techfore.2023.122511
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