Innovation and environmental total factor productivity in China: the moderating roles of economic policy uncertainty and marketization process

How does technological innovation affect carbon emission efficiency in the Yellow River Economic Belt: the moderating role of government support and marketization

The Yellow River Economic Belt (YREB) is a fundamental ecological protection barrier for China. Its carbon pollution issues are currently severe owing to the extensive energy consumption and unsatisfactory industrial constructions. In this context, this paper estimates carbon emission efficiency (CEE) based on the panel data from 56 cities in the YREB during the period 2006-2019 and analyzes its spatial distribution characteristics. Additionally, the spatial Durbin model (SDM) is utilized to examine the effect of technological innovation (TI) on CEE as a result of the moderating effects of government support (GS) and marketization (MA), respectively. The results indicated that (i) in the YREB, CEE exhibited significant spatial autocorrelation characteristics; (ii) TI negatively affected local CEE; (iii) the moderating effect of local GS on the relationship between TI and CEE in the local area was negative, but its spatial spillover effect was still not significant; (iv) the moderating effect of local MA on the relationship between TI and CEE in the local area was also negative, but positive in the surrounding areas. Based on the empirical analysis, a series of policy suggestions are proposed to improve the YREB's CEE.

Will green financial policy help improve China's environmental quality? the role of digital finance and green technology innovation

To speed up the transformation of green economy and promote the development of green finance, the Chinese government set up pilot zones for green finance reform and innovations in five provinces in 2017. This study constructs a quasi-natural experiment, and uses the difference-in-difference model to explore the impact of pilot zones for green finance reform and innovations policy on environmental quality for the first time. This study also examines the impact mechanism of the policy on environmental quality from the perspective of digital finance and green technology innovation for the first time. The results show that the environmental quality has been improved after the implementation of the pilot zones for green finance reform and innovations policy, and digital finance and green technology innovation have a significant intermediary effect in the process of green financial policy on environmental quality. Meanwhile, the policy effect has regional heterogeneity, with the policy effect in the east stronger than that in the central and western regions. The degree of marketization and informationization can promote the policy effect. This study provides important policy implications for the promotion of green finance reform and innovation pilot zones, and helps the government to evaluate the implementation effect of green finance policy.

Impact of "Three Red Lines" Water Policy (2011) on Water Usage Efficiency, Production Technology Heterogeneity, and Determinant of Water Productivity Change in China

This research evaluates the effects of the Three Red Lines policy on water usage efficiency (WUE), production technology heterogeneity, and water productivity change in 31 Chinese provinces between 2006 and 2020. SMB-DEA, Meta-frontier analysis, and Malmquist-Luenberger index (MLI) techniques were employed for estimation. Results revealed that the mean WUE (2006-2020) in all Chinese provinces was 0.52, with an improvement potential of 48%. Shanghai, Beijing, Shaanxi, and Tianjin were the best performers. The WUE scores before (2006-2011) and after (2012-2020) water policy implementation were 0.58 and 0.48, respectively; on average, there was more than a 9% decline in WUE after the implementation of the water policy. The eastern region has the most advanced water utilization technology as its technology gap ratio (TGR) is nearly 1. The average MLI (2006-2020) score was 1.13, suggesting that the MLI has increased by 12.57% over the study period. Further technology change (TC) is the key predictor of MLI growth, whereas efficiency change (EC) diminished from 2006 to 2020. The mean MLI score for 2006-2011 was 1.16, whereas the MLI Score for the period 2012-2020 was 1.10, indicating a modest decline following the implementation of the water policy. All three Chinese regions experienced MLI growth during 2006-2020, with TC the main change factor.

Environmental benefits of innovation policy: China's national independent innovation demonstration zone policy and haze control

In recent years, China has focused its development on technological innovation, trying to achieve a win-win situation between environmental protection and economic growth, and it has formulated a series of policies to promote technological innovation. Taking China's national independent innovation demonstration zone (NIIDZ) policy as an example, this paper empirically investigates the impact of China's innovation policy on haze pollution by using a difference-in-differences (DID) model. The results show that the NIIDZ policy promotes the governance of urban haze pollution and confirms the applicability of the experimentalist governance model in the practice of innovation policy in developing countries. Dynamic analysis shows that the NIIDZ policy has an experience accumulation effect. This policy can continue to promote haze control for at least 6 years, and the policy effect increases year by year. Action mechanism analysis shows that the NIIDZ policy can inhibit urban haze pollution by promoting urban technological innovation and high-tech industrial agglomeration. The estimation results of the spatial DID model show that the NIIDZ policy not only inhibits haze pollution in NIIDZ cities but also has an inhibitory effect on haze pollution in the surrounding non-NIIDZ cities and the NIIDZ cities, which confirms the positive externality characteristics of policy diffusion theory and environmental governance. The conclusions of this paper have important theoretical value for understanding the ecological effect of innovation policy and provide experience for developing countries to implement an experimentalist governance model.

The Impact of Political Connections on Corporate Green Innovation: The Mediating Effect of Corporate Social Responsibility and the Moderating Effect of Environmental Public Opinion

The construction industry is the lifeblood of the national economy; thereby, to some extent, the green transformation of the construction industry is representative of the industrialization levels of modern construction, especially in China. Based on the panel data of A-share listed companies in China’s construction industry from 2014 to 2019, this work studies the influence mechanism of political connection on corporate green innovation by establishing a multiple regression model, analyzes the realization path of corporate social responsibility as an mediating variable on the impact of political connections on corporate green innovation, and reveals the role boundary of environmental public opinion as a moderating variable on the impact of political connections on corporate green innovation. The results show that political connection has a significant positive impact on corporate green innovation, and this impact exists in both state-owned and non-state-owned enterprises, as well as in the eastern region and the central and western regions of China. Moreover, corporate social responsibility plays a partial mediating role in the relationship between political connection and corporate green innovation, and serves as an effective value transfer intermediary, a benefit balance mechanism, and a risk avoidance method. Political connections urge enterprises to be more socially responsible, thus affecting green innovation. Additionally, environmental public opinion strengthens the positive impact of political connections on corporate green innovation, especially in non-state-owned enterprises and in the eastern regions with a higher degree of marketization. The research conclusions provide a new theoretical reference for promoting the transformation of green innovation and achieving high-quality development in the construction industry.

Does ESG Performance Promote High-Quality Development of Enterprises in China? The Mediating Role of Innovation Input

Environmental, Social and Governance (ESG) concept has internal consistency with the high-quality development of China’s economy theoretically, and implementing ESG concept is an important way to achieve sustainable economic development. However, whether ESG performance can promote the high-quality development from the perspective of micro enterprises is rarely studied. Thus, we explore the impact and mechanism of ESG performance on enterprises’ high-quality development. The empirical results indicate that good ESG performance is conducive to promoting high-quality development of enterprises. Environmental performance and social performance can promote high-quality development of enterprises more than corporate governance performance. The mechanism results show that innovation input plays a medicating role between ESG performance and enterprises’ high-quality development. The additional analysis suggest that the promoting effect is more obvious in state-owned enterprises, environmentally sensitive enterprises and enterprises with less financing constraints. This study has enlightenment significance for enterprises to value ESG performance and government departments to formulate relevant policies.