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Does Tax Incentives Matter to Enterprises’ Green Technology Innovation? The Mediating Role on R&D Investment

Author

Listed:
  • Haijun Wang

    (School of Management, Jiangsu University, Zhenjiang 212013, China
    These authors contributed equally to this work.)

  • Jinlan Yang

    (School of Finance & Economics, Jiangsu University, Zhenjiang 212013, China
    These authors contributed equally to this work.)

  • Naiping Zhu

    (School of Finance & Economics, Jiangsu University, Zhenjiang 212013, China
    Jiangsu Collaborative Innovation Center of Modern Public Finance and Taxation Governance, Nanjing 210000, China)

Abstract

This study focused on China’s A-share listed companies from 2017 to 2022, and concluded that tax incentives have a positive impact on the performance of green technology innovation, and that value-added tax preferences are more effective than income tax preferences. Tax incentives guide enterprises to increase R&D investment, and R&D investment constitutes the mechanism of tax incentives to promote the performance green technology innovation. Non-state-owned enterprises benefit more from the timely help of tax incentives. Higher levels of the business environment in certain regions lead to more significant promoting effects of tax incentives. Enterprises in non-heavily polluting industries are more easily incentivized by preferential tax policies to undertake more green innovations. The study’s findings aimed to improve current preferential tax policies and help enterprises achieve green and innovative development.

Suggested Citation

  • Haijun Wang & Jinlan Yang & Naiping Zhu, 2024. "Does Tax Incentives Matter to Enterprises’ Green Technology Innovation? The Mediating Role on R&D Investment," Sustainability, MDPI, vol. 16(14), pages 1-20, July.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:14:p:5902-:d:1432803
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    References listed on IDEAS

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    Cited by:

    1. Yongjun Chen & Wei Li & Longji Zeng & Min Chen, 2025. "Quality or Quantity? The Impact of Voluntary Environmental Regulation on Firm’s Green Technological Innovation: Evidence from Green Factory Certification in China," Sustainability, MDPI, vol. 17(6), pages 1-31, March.
    2. Bingnan Guo & Baoliang Zhan & Mengyu Wang, 2025. "How Does Green Financial Reform Impact Carbon Emission Reduction and Pollutant Mitigation in Chinese Manufacturing Enterprises?," Sustainability, MDPI, vol. 17(17), pages 1-23, August.
    3. Li Chen & Xiankun Deng, 2024. "Executive Accountability Pressure and Green Innovation: Evidence from China," Sustainability, MDPI, vol. 17(1), pages 1-25, December.
    4. Zhou, Yuan & Zhang, Qintian & Xu, Guannan & Wang, Yanmeng, 2025. "Regional S&T planning and green generic technologies: A spatial differences-in-difference analysis," Energy Economics, Elsevier, vol. 150(C).
    5. Wu, Zihang & Zeng, Ning & Song, Jiansong, 2025. "Tax incentives and corporate technological innovation performance: An analysis from the perspective of R&D investment," International Review of Economics & Finance, Elsevier, vol. 102(C).

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