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How does information consumption pilot policy affect climate-friendly technological innovation? Evidence from China

Author

Listed:
  • Yan Peng

    (Sichuan University Jinjiang College)

  • Jiao Geng

    (Sichuan University Jinjiang College)

Abstract

To promote transformation and upgrade of consumption based on digital technology, China has released the information consumption pilot policy that can promote climate-friendly behavior. Does this policy promote climate-friendly technological innovation? This study employs a theoretical analysis based on “demand-pull innovation” and “technology-push innovation.” Using a difference-in-differences approach and analyzing city-level data from 2008 to 2023, this study examines the effect of the policy on climate-friendly innovation. The results show that, first, the policy enhances environmental awareness of consumers and expands the scale of consumption from the demand side, promoting digital technology development from the supply side, and thus facilitating climate-friendly innovation. Second, the mechanism study shows that the policy improves city risk-taking and government technology expenditure, both of which are conducive to climate-friendly innovation. Third, the role of the policy in promoting climate-friendly innovation is greater in cities with large populations and high public climate concerns.

Suggested Citation

  • Yan Peng & Jiao Geng, 2025. "How does information consumption pilot policy affect climate-friendly technological innovation? Evidence from China," Economics of Governance, Springer, vol. 26(4), pages 591-623, December.
  • Handle: RePEc:spr:ecogov:v:26:y:2025:i:4:d:10.1007_s10101-025-00340-4
    DOI: 10.1007/s10101-025-00340-4
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    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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