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Environmental Governance Goals of Local Governments and Technological Innovation of Enterprises under Green Performance Assessment

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  • Xingshuai Wang

    (School of Economics, Shandong University of Technology, Zibo 255000, China)

  • Ehsan Elahi

    (School of Economics, Shandong University of Technology, Zibo 255000, China)

  • Zainab Khalid

    (School of Economics and Management, Southeast University, Nanjing 210096, China)

  • Mohammad Ilyas Abro

    (Department of Basic Sciences and Humanities, Dawood University of Engineering and Technology, Karachi 74800, Sindh, Pakistan)

Abstract

The current study empirically estimates the impact of local government environmental governance on enterprise technological innovation from the perspective of a green political performance assessment of local governments with Chinese characteristics. Fourteen years of data (from 2006 to 2019) on pollutant emissions, and the patents of A-share listed companies were collected from 230 cities in China. A fixed effect model and tool variable method were applied to empirically analyze the objectives of the study. The results show that the environmental governance formulated by the local government has regional differences, which are shown as lower governance indicators for underdeveloped areas and higher governance indicators for developed areas. Environmental governance has a greater promotion effect on technological innovation in enterprises in developed regions, as well as in large and private enterprises. Moreover, mechanism analysis showed that the local governments preferred the path of financial subsidies to promote the level of technological innovation in enterprises. This study provides a foundation for attaining the “win–win” scenario of local government environmental stewardship and high-quality green economic growth.

Suggested Citation

  • Xingshuai Wang & Ehsan Elahi & Zainab Khalid & Mohammad Ilyas Abro, 2023. "Environmental Governance Goals of Local Governments and Technological Innovation of Enterprises under Green Performance Assessment," IJERPH, MDPI, vol. 20(3), pages 1-19, January.
    • Handle: RePEc:gam:jijerp:v:20:y:2023:i:3:p:1996-:d:1043490
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