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Improving the Innovative Performance of Renewable Energy Enterprises in China: Effects of Subsidy Policy and Intellectual Property Legislation

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  • Xiaofeng Xu

    (International School of Law and Finance, East China University of Political Science and Law, Shanghai 200042, China
    Legal Research Center of Optimizing Doing Business Environment, East China University of Political Science and Law, Shanghai 200042, China
    Energy Law and Policy Institute, East China University of Political Science and Law, Shanghai 200042, China)

  • Xiangyu Chen

    (International School of Law and Finance, East China University of Political Science and Law, Shanghai 200042, China
    Legal Research Center of Optimizing Doing Business Environment, East China University of Political Science and Law, Shanghai 200042, China)

  • Yi Xu

    (School of Economics and Management, Tongji University, Shanghai 200092, China)

  • Tao Wang

    (College of Environmental Science and Engineering, Tongji University, Shanghai 200092, China
    UNEP-Tongji Institute of Environment for Sustainable Development, Tongji University, Shanghai 200092, China
    Key Laboratory of Cities’ Mitigation and Adaptation to Climate Change in Shanghai, Shanghai 200092, China)

  • Yifan Zhang

    (Koguan School of Law, Shanghai Jiao Tong University, Shanghai 200240, China)

Abstract

Energy efficiency and emissions reductions are effective initiatives to address climate change and energy security. China has increased government subsidies and intellectual property protection (IPP) intensity to promote technological innovation in the renewable energy sector. This paper selects samples of geothermal, wind, and solar energy companies and examines whether the two initiatives mentioned above can improve company innovation, and assesses their action pathways. The results reveal that: (i) government subsidies can directly facilitate renewable energy enterprises’ innovative performance, and research and development (R&D) input served as a medium; and (ii) the intensity of IPP moderation needed for geothermal and solar enterprises to utilize the government subsidy to enhance innovation. The government should consider the differences of different sub-sectors of renewable energy when increasing subsidies. Better laws and policies are needed to strengthen the protection of intellectual property rights and stimulate innovation in renewable energy enterprises.

Suggested Citation

  • Xiaofeng Xu & Xiangyu Chen & Yi Xu & Tao Wang & Yifan Zhang, 2022. "Improving the Innovative Performance of Renewable Energy Enterprises in China: Effects of Subsidy Policy and Intellectual Property Legislation," Sustainability, MDPI, vol. 14(13), pages 1-24, July.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:13:p:8169-:d:855645
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    2. Phemelo Tamasiga & Hope Mfuni & Helen Onyeaka & El houssin Ouassou, 2025. "Green industrial policy as an enabler of the transition to sustainability: challenges, opportunities and policy implications for developing countries," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 27(1), pages 355-376, January.
    3. Zhang, Ying & Liu, Baoliu & Xue, Jinjun & Chen, Yiming & Zhao, Fang, 2025. "Would geopolitical risks be the new driver of the energy transition? An empirical study on renewable energy technology innovation," Energy Economics, Elsevier, vol. 141(C).
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    5. Dongdong Song & Yuewen Liu & Tianbao Qin & Hongsong Gu & Yang Cao & Hongjun Shi, 2022. "Overview of the Policy Instruments for Renewable Energy Development in China," Energies, MDPI, vol. 15(18), pages 1-14, September.
    6. Hong Chen & Haowen Zhu & Tianchen Sun & Xiangyu Chen & Tao Wang & Wenhong Li, 2023. "Does Environmental Regulation Promote Corporate Green Innovation? Empirical Evidence from Chinese Carbon Capture Companies," Sustainability, MDPI, vol. 15(2), pages 1-24, January.
    7. Bo Zeng & Weimin Zhang & Defang Ma & Chenyang Zhang & Xiao Liu, 2023. "The Impact of Group Control on the Effectiveness of Enterprise Innovation: An Empirical Study," Sustainability, MDPI, vol. 15(13), pages 1-15, July.
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