Using a balance panel dataset of 278 Chinese cities, this study is the first to employ a spatial difference-in-differences (SDID) approach to investigate both the direct and indirect effects of ...low-carbon pilot policy on technological innovation. A series of robustness tests including the parallel trend test, placebo test and using SDID with propensity score matching to alleviate spatial sample selection bias are performed. Furthermore, mechanism and heterogeneity analyses are conducted by using mediation effect and moderation effect models, respectively. The results show that implementing low-carbon pilot policy have a significant promotion effect on technological innovation both in pilot cities and neighbouring cities, resulting from enhancing green total factor productivity, optimizing the industrial structure, alleviating financing constraints, and enhancing economic density. Moreover, the technological innovation increasing effect is more significant in cities with higher CO2 emissions, more cultural diversity, higher political hierarchy, lower terrain relief and more integrated market. However, low-carbon pilot policy which implementing in cities with higher CO2 emissions would not help to promoting technological innovation in neighbouring cities. In addition, low-carbon pilot policy increase technological innovation within 700 km of the coastline, whereas the beyond 800 km, the reduction effect is dominant.
•Based on the market-based environmental regulation and agglomeration economic theory•Examine both the direct and indirect effects of LCCP on technological innovation via SDID approach.•Implement LCCP promotes technological innovation both in pilot cities and neighboring cities•LCCP enhance green TFP, optimize industrial structure, alleviate financing constraints and enhance economic density•Effect of LCCP on technological innovation exhibits spatial attenuation
Using the quasi-experimental method, this research investigates the impact of green credit policy on the upgrade of energy-intensive enterprises from the perspective of credit allocation efficiency. ...Through the panel data of listed companies in China, this study finds that the green credit policy under the Green Credit Guidelines in 2012 (GCG2012) has a significantly negative effect on the research and development (R&D) intensity and the total factor productivity (TFP) of treated firms. Empirical evidence also shows that the GCG2012 significantly reduces bank credit but increases trade credit. Consequently, the substitution hypothesis is established. Furthermore, GCG2012 has reduced the allocation efficiency of bank credit within energy-intensive industries. As an improved green credit policy to encourage enterprises to invest in energy efficiency, the Energy Efficiency Credit Guidelines in 2015 (EECG2015) increases both the bank credit and the fixed asset investment, whereas no increase in R&D intensity or TFP is found. These findings are enlightening for designing better green credit policies.
•Investigate the impact of green credit policy on the upgrade of energy-intensive enterprises in China.•Use the quasi-experimental method by incorporating an event of green credit policy.•GCG2012 has a significantly negative effect on R&D intensity and TFP of energy-intensive enterprises.•GCG2012 significantly reduces bank credit but increases trade credit.•GCG2012 has reduced the allocation efficiency of bank credit within energy-intensive industries.
Carbon emission is one of the major problems in emissions generating companies (EGCs) due resource consumption, spurring a need for carbon emission reduction, but most EGCs cannot reduce it due to a ...lack of green technology implementation. This research proposes a monopoly market under the consideration of EGCs and develops a simulation-based optimization model to measure the optimal behavior of green technology investment to reduce carbon emission. To see its implementation, we investigate the intervention of the government, which provides an optimal subsidy on green technology investment. Our study helps the government to find an optimal green technology investment and subsidy on green technology investment. Additionally, this optimal subsidy allows decision-makers to improve environment cleanliness by taking incentives in the form of green subsidy. They can also fulfill their primary objective of profit maximization by finding an optimum product price.
•The optimal behavior of green technology investment has been investigated in EGCs.•The study was analyzed by using discrete event simulation modeling and optimization under a monopoly market.•Subsidy policies from the government have been extracted to maximize the profit of EGCs and to keep the environment clean.•Optimal behavior of green technology investment subsidy was found to maximize profit under GTI.
Faced with the global climate change, as a major greenhouse gas emitter, China launched a pilot policy on low-carbon city construction since 2010. Few studies have discussed how climate policies ...affect the investment and financing behavior of energy-intensive enterprises. Based on the micro data of A-share listed enterprises in China’s energy-intensive industries, this study aims to assess the productivity effect of low-carbon city pilot (LCCP) policy and investigates the mechanism of financing and investment using the difference-in-difference method. Empirical results provide evidence that the LCCP policy has significantly improved the total factor productivity of energy-intensive enterprises. In terms of the mechanisms, the LCCP policy has increased the supply of bank credit to enterprises and encouraged their long-term investment in fixed assets and R&D activities. The productivity effect of the LCCP policy is greater for state-owned enterprises and enterprises with political connection. Urban human capital, industrial agglomeration, and resource endowment contribute to the productivity effect of LCCP policy for enterprises in the energy-intensive industries. The findings show that the LCCP is an effective comprehensive policy to promote the high-quality development of energy-intensive industries, and the findings also provide enlightenment for enacting better climate transition policies.
This study investigates Chinese A-share listed companies in the new energy industry for the period 2007–2019. We shed new light on the nexus between fiscal policy uncertainty and corporate innovation ...investment. The main empirical findings are threefold. First, fiscal policy uncertainty significantly reduces new energy enterprises' innovation investment, and the adverse effect is mainly due to the decline in the incentive effect of government support on innovation investment. Second, product market competition reduces the adverse effect of fiscal policy uncertainty on innovation investment, which indicates that the strategic growth option theory holds to a certain extent. Third, bank credit constraint is the mechanism by which fiscal policy uncertainty restrains innovation investment. Overall, although there may be differences in the influence mechanism of fiscal policy uncertainty on innovation, the empirical evidence generally does not support the viewpoint of ownership differences. The conclusions continue to hold after controlling for endogeneity and conducting a series of robustness tests.
•Shed new light on the nexus of fiscal policy uncertainty and corporate innovation investment.•Investigate A-share listed companies in China's new energy industry for the 2007–2019 period.•Findings show that the fiscal policy uncertainty significantly reduces the innovation investment of new energy enterprises.•Product market competition reduces the adverse effect of fiscal policy uncertainty on innovation investment.•Bank credit constraint is the mechanism that fiscal policy uncertainty restrains innovation investment.
Agricultural activities immensely contribute to greenhouse gas emissions (GHGs). This study investigates the heterogeneous effect of agricultural production (AGRIP) on three major GHGs emissions, ...i.e., carbon dioxide (CO2), nitrous oxide (N2O), and methane (CH4) under the Environmental Kuznets Curve (EKC) framework using a balanced panel data of 90 countries from the period 1991 to 2019. Second-generation panel unit root and cointegration tests are conducted to account for cross-sectional dependence. The findings suggest that there is a long run equilibrium among target variables. Evidence from panel quantile regression suggests that AGRIP significantly reduced CO2 emissions, and the effect is stronger in lower quantiles (least carbon emitters). On the other hand, AGRIP increases N2O and CH4 emissions in all quantiles. However, AGRIP is homogeneously distributed across N2O quantiles while the effect is stronger in higher quantiles (high methane emitters) in the case of CH4 model. Concerning agricultural trade, exports impede CO2 emissions but increase N2O and methane emissions. Agricultural imports are positively associated with all GHGs emissions. The effect of agricultural trade is largely heterogeneous and varies across different quantile levels of GHGs emissions. The EKC is fully valid for CO2 and N2O but not for the methane emissions model. Based on the results, it is suggested that high GHGs emitter should shift their agricultural activities from traditional to sustainable approaches along with green trade policies to achieve climate neutrality targets.
•The method of moments quantile regression is utilized.•Agricultural production (AGRIP) decreases CO2 emissions via carbon sequestration.•N2O and CH4 are the main sources of AGRIP.•EKC is valid for CO2 and N2O models but not for CH4.•Agricultural trade increase GHGs asymmetrically and heterogeneously.
Despite the increasing use of digital technology in industrial production, how industrial digitalization affects the environmental performance of production activities remains unclear. This research ...contributes to the literature on the relationship between industrial digitalization and enterprise environmental performance by employing a large sample of Chinese manufacturing enterprises. Results indicate that the environmental performance of manufacturing enterprises has been significantly improved in the process of industrial digital transformation. Structural and technology effects are the transmission channels; additionally, structural effect is the main contributor to the positive environmental effects of information and communications technology (ICT) penetration. Industrial digitalization reduces the production scale of heavy-polluting enterprises and improves product innovation and green total factor productivity, but it has an insignificant effect on total factor productivity. Moreover, industrial digitalization improves enterprise environmental performance by introducing front-end cleaner production technologies, rather than by increasing pipe-end pollutant treatment facilities.
This research presents a full picture of the rationale behind China's infrastructure investment under the Belt and Road Initiative (BRI), which was formally initiated in 2013. In this paper, we argue ...that the main reason for China to conduct infrastructure investment under BRI is to strategically respond to the emergence of the “New Normal,” which pushes the country to sustain economic growth through further structural transformation. We come up with three relevant factors for why infrastructure projects under BRI could be conducive to structural transformation in China's economy, as it (1) provides a much better alternative to the existing poor logistic conditions and can create accessibility among regions, (2) enables the smooth flow of factor endowments of production that significantly reduce production costs, and (3) indirectly strengthens the influence of the debt provider's home currency. This paper also provides three theoretical pillars: the comparative advantage following (CAF) and defying (CAD) development strategies, the late development theory with antineoliberalism characteristics, and the new international division of labor, from which these three factors might potentially explain how BRI could enhance the structural transformation of this second‐largest economy in the world.
This study explores the impacts of country risks on the relationship between energy consumption and financial development for 79 countries. By using the panel smooth transition regression model, this ...study finds non-linear relationships between variables - that is, the relationships differ in higher and lower risk environments. We show that banking sector development has larger impacts on energy consumption than does stock market development. The results of the full sample show under the stable country risk environments that financial development could help to reduce energy consumptions. Lastly, the results offer that different types of financial development and country risk environments have varying impacts on energy consumption in OECD and non-OECD countries.
•Explore the impacts of country risks on the energy-finance nexus.•Use the panel smooth transition regression model.•The relationships between variables differ in higher and lower risk environments.•Banking sector development has larger impacts on energy consumption than does stock market development.•Under the stable country risk environments financial development could help to reduce energy consumptions.
Carbon emission is a global issue, and China is facing many problems to resolve it, especially in emission‐generating companies (EGCs). To maintain sustainable development, it is necessary to reduce ...carbon emissions for the well‐being of society, and carbon neutrality can play an important role. With China targeting the goal of carbon neutrality to reduce carbon emissions, this research aims to bridge the gap in the literature by considering carbon neutrality instruments in a duopoly market. The study sets up a mathematical model of the duopoly game to achieve desired objectives and then applies a simulation‐based optimization technique to examine the mathematical model under different experiments. After manipulating various scenarios to find the optimal values of carbon neutrality instruments, the results indicate that green bond provision, emission tax, and emission quota play a vital role in carbon neutrality. Different combinations of carbon neutrality instruments reduce various levels of carbon emissions. We further show that a combination of emission tax upon EGCs plays a key role in reducing carbon emissions during the fifth scenario. In the second scenario, a combination of green bond provision and emission tax reduces carbon emissions, but is lower than the fifth scenario. This research offers a reference for policymakers to move towards carbon neutrality, and it is beneficial for the government to decide the optimal values of carbon neutrality instruments.
