The effect of environmental regulations on innovation in heavy-polluting and resource-based enterprises: Quasi-natural experimental evidence from China

Environmental protection regulations adopted by governments affect the microeconomic behavior of enterprises. The Chinese government began piloting the outgoing leading officials’ accountability audit of natural resources assets (OANRA) in some regions in 2014. Based on this quasi-natural experimental setting, this paper chose heavy-polluting and resource-based enterprises in pilot regions of China from 2011 to 2016 as examples for studying the impact of the OANRA on enterprise innovation and further examines the role of government subsidies in this process. The study finds that the OANRA has no significant impact on enterprise innovation. However, with support from government subsidies, the OANRA dramatically accelerates enterprise innovation investment. The results are still seen after applying propensity matching analysis (PSM), balancing panel data and deleting special provinces. Further analysis shows that this effect is more obvious among small-scale, state-owned enterprises that are located in areas with high degrees of marketization and high bank credit constraints. This study advances the research of the OANRA’s effects on the microeconomic behavior of enterprises. Moreover, the adjustment effect of government subsidies also provides great reference value to making rational use of policy to cooperate with the OANRA.

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The Impact of Financial Support on Innovation Efficiency of Government Subsidies From the Perspective of DEA-Tobit——An Empirical Study Based on Chinese New Energy Vehicle Enterprises

10.21203/rs.3.rs-829271/v1 ◽

2021 ◽

Author(s):

Sha Zhang ◽

Fang Chen

Keyword(s):

Financial Support ◽

Negative Impact ◽

Positive Impact ◽

Reference Value ◽

Chinese Government ◽

Operating Cycle ◽

Government Subsidies ◽

New Energy ◽

New Energy Vehicle ◽

The Impact

Abstract The new energy vehicle enterprises is a strategic emerging industry in China, so more and more government subsidies to promote innovative development are being accepted by new energy vehicle enterprises. What is the innovation efficiency of new energy vehicle enterprises receiving government subsidies? With the acceleration of the process of global economic financialization, whether financial support can promote the innovation efficiency of government subsidies and how enterprises should allocate financial assets have become issues that need to be deeply considered. Based on the annual report data of China's domestic listed new energy vehicle enterprises from 2015 to 2020, the relationship between government subsidies and enterprise innovation efficiency is empirically tested, and the impact of financial support on enterprise R&D innovation efficiency is investigated. The empirical results show that government subsidies are wasteful and fail to effectively promote R&D innovation, and the innovation efficiency of government subsidies is positively influenced by firm nature and firm age, while the total asset turnover ratio, operating cycle and firm size have a negative impact on innovation efficiency. Further research found that there is an inverted U-shaped relationship between financial support and the innovation efficiency of government subsidies. A certain degree of financial support has a positive impact on the innovation efficiency of government subsidies, but excessive financial support has a negative impact on the innovation efficiency of government subsidies. The conclusion provides empirical evidence for the Chinese government to improve the subsidy policy and standardize the development of new energy vehicle enterprises, and has a certain reference value for guiding new energy vehicle enterprises to reasonably allocate financial support.

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Environmental Regulation, Government Subsidies, and Green Technology Innovation—A Provincial Panel Data Analysis from China

International Journal of Environmental Research and Public Health ◽

10.3390/ijerph182211991 ◽

2021 ◽

Vol 18 (22) ◽

pp. 11991

Author(s):

Pei Wang ◽

Cong Dong ◽

Nan Chen ◽

Ming Qi ◽

Shucheng Yang ◽

...

Keyword(s):

Environmental Regulation ◽

Technology Innovation ◽

Panel Data Analysis ◽

Green Technology ◽

Role Of Government ◽

New Era ◽

Government Subsidies ◽

The North ◽

The Impact

Economic development in the “new era” will require green innovation. To encourage the growth of green technology innovation, it has become fashionable to strengthen environmental regulation. However, the impact of environmental regulation on green technology innovation, as well as the role of government subsidies, needs to be examined. Utilizing fixed-effect models and 2SLS models to explore the impact of environmental regulation on green technology innovation in China from 2003 to 2017, this research sought to examine whether environmental regulations impact green technology innovation, as well as the role of government subsidies in the above-mentioned influence path. The findings support the Porter Hypothesis by demonstrating an inverted “U” relationship between environmental regulation and green technology innovation. The impact of environmental regulation on green technology innovation varies by region. To be specific, there is an inverted “U” relationship between environmental regulation and green technology innovation in China’s central and central coast regions. In comparison, the north area, southern coast, and southwest region exhibit a “U” relationship between the two. The relationship is not significant in the Beijing-Tianjin region. Additionally, government subsidies act as an intermediate in this process, positively influencing firms to pursue green technology innovation during the earliest stages of environmental regulation strengthening. However, government subsidies above a certain level are unproductive and should be used appropriately and phased off in due course.

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An Impact Analysis of Farmer Field Schools on Hog Productivity: Evidence from China

Agriculture ◽

10.3390/agriculture11100972 ◽

2021 ◽

Vol 11 (10) ◽

pp. 972

Author(s):

Jinyang Cai ◽

Fengxiang Ding ◽

Yu Hong ◽

Ruifa Hu

Keyword(s):

Conversion Ratio ◽

Feed Conversion Ratio ◽

Small Scale ◽

Chinese Government ◽

Feed Conversion ◽

Crop Cultivation ◽

Farmer Field Schools ◽

Hog Production ◽

Field Schools ◽

The Impact

In recent decades, pigs and pork have been the central elements of Chinese agricultural systems, food security, and diet. China’s rapid income growth has induced a significant change in food consumption patterns, and hog production has received utmost attention from both, the Chinese government and the public. While the impact of Farmer Field Schools (FFS) on crop cultivation has been widely studied, few studies have examined the impact of FFS on hog production. This study uses data collected from 222 hog farmers in Beijing to examine the impact of FFS on the productivity of hog production, focusing on its three main indicators: feed conversion ratio and the mortality of sows and piglets. We found that farms that participated in FFS programs significantly improved the feed conversion ratio of hog production, particularly in small scale hog farms. On average, FFS reduced the feed conversion ratio for herd sizes of 1000, 500, and 200 by 6.8%, 10.7%, and 14.0%, respectively. We did not find evidence that farms that participated in FFS programs had a significant impact on minimizing the mortality of sows and piglets. This study suggests that the knowledge training model of the FFS program could also work in fields other than crop cultivation. Furthermore, we suggest that more attention could be paid to extension services diffusing knowledge of vaccination and disinfection in hog FFS programs.

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Impact of Government Subsidies on Manufacturing Innovation in China: The Moderating Role of Political Connections and Investor Attention

Sustainability ◽

10.3390/su12187740 ◽

2020 ◽

Vol 12 (18) ◽

pp. 7740

Author(s):

Shuang Wang ◽

Shukuan Zhao ◽

Dong Shao ◽

Hongyu Liu

Keyword(s):

Political Connections ◽

Chinese Government ◽

Manufacturing Companies ◽

Investor Attention ◽

Incentive Effect ◽

Government Subsidies ◽

Rational Allocation ◽

Sample Data ◽

Enterprise Innovation

Although government subsidies have gradually become a crucial means of endorsing public innovation policies, there remains no unified conclusion on the mechanism of their role in enterprise sustainable innovation investment. Employing sample data of listed Chinese manufacturing companies between 2011 and 2019, this study aims to discuss the incentive effect of government subsidies on enterprise innovation investment based on different enterprise ownership. With the combination of resource dependency theory and stakeholder theory, the findings suggest that the intensity of government subsidies exerts an incentive effect on corporate innovation investment; however, the incentive effect is different under the influence of political connections and investor attention. In particular, political connections inhibit the incentive effect and investor attention promotes the incentive effect. Overall, this study provides empirical evidence for the rational allocation of resources by the Chinese government and the acquisition of innovation investment by enterprises of different ownerships and the development of innovation capabilities.

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Impact of Chinese Government Subsidies on Enterprise Innovation: Based on a Three-Dimensional Perspective

Sustainability ◽

10.3390/su13031288 ◽

2021 ◽

Vol 13 (3) ◽

pp. 1288

Author(s):

Lili Jia ◽

Eunyoung Nam ◽

Dongphil Chun

Keyword(s):

Technological Innovation ◽

Technology Innovation ◽

Institutional Environment ◽

Market Competition ◽

Academic Community ◽

Least Square ◽

Chinese Government ◽

Government Subsidies ◽

The Government ◽

The Impact

Government subsidies are an important means to guide enterprises’ investment in technological innovation. While countries are increasing government subsidies to enterprises, how to effectively leverage government subsidies is a concern of the academic community. At present, scholars’ research conclusions on the impact of government subsidies on enterprise technological innovation include promotion effect, extrusion effect, and mixing effect. Relevant research is often conducted from a single perspective. This paper studies the relationship between government subsidies and enterprise technological innovation, and integrates the macro-institutional environment, meso-market structure, and micro-corporate governance into the same framework. Taking information transmission, software, and information technology service companies as samples, it analyzes the influencing factors of the Chinese government research and development (R&D) subsidies on enterprises’ innovation investment. This paper uses Stata16 software to perform the least square analysis. The research shows that the Chinese government R&D subsidies have a significant incentive effect on corporate technology innovation investment. The higher the marketization process, the more dispersed its equity, and the government subsidy promotes corporate technology innovation investment. The more significant it is; for industries with different product market competition, government subsidies have no significant impact on enterprises’ investment in technological innovation. Based on empirical research conclusions, this study puts forward policy recommendations to increase the intensity of government subsidies and optimize the structure of corporate equity to increase the leverage effect of government subsidies.

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Socio-Economic Opportunities from Miscanthus Cultivation in Marginal Land for Bioenergy

Energies ◽

10.3390/en13112741 ◽

2020 ◽

Vol 13 (11) ◽

pp. 2741 ◽

Cited By ~ 1

Author(s):

Calliope Panoutsou ◽

David Chiaramonti

Keyword(s):

Value Chain ◽

Environmental Sustainability ◽

Rural Areas ◽

Agricultural Land ◽

Crop Yields ◽

Reference Value ◽

Value Chains ◽

Small Scale ◽

Marginal Land ◽

The Impact

Substantial areas of agricultural land in south European countries are becoming increasingly marginal and being abandoned due to arid climate with prolonged summers and low rainfall. Perennial, lignocellulosic crops, such as Miscanthus, offer an outlet that couples agriculture with energy, creates employment, and increases profits from feedstock production in rural areas. This research paper follows an Input Output methodology and uses an econometric model to investigate the impact of crop yielding performance and marginal land to jobs and profit from the cultivation and supply of Miscanthus in low quality, marginal land in Italy and Greece. Two value chain cases are analysed: small scale Combined Heat and Power (CHP) and Fast Pyrolysis Bio Oil (FPBO). The cultivation of Miscanthus in both reference value chains exhibits good employment prospects, with smaller scale value chains creating more labour-intensive logistics operations. The activities can also generate substantial financial profit especially with higher crop yields. Results show a pronounced relationship between profitability and crop yield for both reference value chains - cultivation and supply operations become more profitable with increasing yield. It is, therefore, important to achieve higher yields through good cropping practices, while maintaining high levels of environmental sustainability.

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The Influence of Government Subsidies on Enterprise Innovation Performance

E3S Web of Conferences ◽

10.1051/e3sconf/202127503006 ◽

2021 ◽

Vol 275 ◽

pp. 03006

Author(s):

Wang Lan

Keyword(s):

Industrial Policy ◽

Innovation Performance ◽

Innovative Development ◽

Social Reforms ◽

Government Subsidies ◽

Support For Innovation ◽

Enterprise Innovation ◽

The Government ◽

The Impact ◽

Innovation And Entrepreneurship

In the current society of innovative development, the innovation and reform of enterprises is particularly important in the development of the entire industry, especially with the country’s vigorous support for innovation and entrepreneurship in recent years. The rise of enterprises in the market is like mushrooms, and the development of enterprises will usher in a new challenge and opportunity, in order to be able to occupy a certain position among many enterprises and obtain greater advantages. Enterprises must constantly adjust their development strategies based on social reforms. However, the government subsidies to enterprises are one of the important starting points for China to realize the industrial policy, and they have played an important role in supporting and developing China’s relatively weak and strategic industries. In the development of enterprises, the influence of government subsidies on the development of enterprises should not be ignored. For this reason, further exploration of the impact of government subsidies on the development of enterprise innovation performance has become an issue that governments and enterprises need to study and pay attention to. This article will further briefly introduce the impact of government subsidies on enterprise innovation performance.

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Impact of Grain Subsidy Reform on the Land Use of Smallholder Farms: Evidence from Huang-Huai-Hai Plain in China

Land ◽

10.3390/land10090929 ◽

2021 ◽

Vol 10 (9) ◽

pp. 929

Author(s):

Xinru Han ◽

Ping Xue ◽

Ningning Zhang

Keyword(s):

Land Use ◽

Large Scale ◽

Farm Size ◽

Small Scale ◽

Chinese Government ◽

Smallholder Farms ◽

Grain Subsidy ◽

The Impact ◽

Sown Area ◽

Subsidy Reform

Smallholder farms have played an essential role in agricultural production and food security. In order to increase farm size, the Chinese government announced a reform of the grain subsidy program in 2015. Under the reform, 20% of the aggregate input subsidy, as well as the pilot subsidy to large-scale farmers and the incremental part of the agricultural support and protection subsidy budget, were used to support increasing farm size. This study evaluated the impact of China’s grain subsidy reform on the land use of smallholder farms to investigate whether the reform achieved its goal. Based on 2063 samples obtained from the 2013–2015 Survey for Agriculture and Village Economy data in Huang-Huai-Hai Plain, we conducted a difference-in-difference model to solve the problem of missing counterfactual states in policy evaluation. Farms from Henan and Shandong were assigned to the treatment group, and farms from Hebei were assigned to the control group. The results revealed that the average treatment effect on the treated of the impact of the grain subsidy reform on the wheat-sown area was −25% (0.10 ha). Furthermore, there was heterogeneity in regard to the subsidy reform effects in different sown-area groups. The reform had the most significant impact on the smallest farmers. We also found that China’s grain subsidy reform had a significant and positive effect on the amount of outflow land area, while the impact of subsidy reform on land tenure was insignificant. Our findings suggest that while encouraging large-scale farms, it is necessary to take into account farmers’ small-scale operations and gradually promote the transformation of small-scale operations to large-scale operations. The Chinese government should strengthen the supervision of land use to achieve the goal of ensuring food security.

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Does institutional fragility affect innovation investment?

Chinese Management Studies ◽

10.1108/cms-10-2020-0436 ◽

2021 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Xinli Li ◽

Jun Cheng ◽

Shouyi Wan ◽

Zhenyang Zhao

Keyword(s):

Incremental Innovation ◽

High Tech ◽

Substantial Impact ◽

Content Type ◽

Government Subsidies ◽

New Ideas ◽

Enterprise Innovation ◽

Innovation Output ◽

The Impact ◽

The Relationship

Purpose This study aims to investigate the impact of institutional fragility on the innovation investments of enterprises by analyzing the moderating effect of government subsidies and the integration of industry and finance. Design/methodology/approach Multiple regression analysis was used on 10,838 samples of 2,356 listed companies in China for the period 2007–2017, to empirically test the influence of institutional fragility on innovation investment. Moreover, Heckman’s two-stage approach was used for the robustness of the regression results. Findings The results show that the relationship between institutional fragility and innovation investment is an inverted U-shaped; government subsidies negatively moderate the relationship between institutional fragility and innovation investment, while the integration of industry and finance positively moderates them. Further analysis shows that the relationship between institutional fragility and innovation investment is more significant for high-tech enterprises. Similarly, the relationship between institutional fragility and innovation output also presents an inverted U-shape, which mainly affects enterprises’ breakthrough innovation output, but has no substantial impact on the incremental innovation output. Originality/value The conclusions provide new ideas for guiding the government’s reform, promoting the integration of industry and finance and promoting enterprise innovation.

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Can Values of Honesty, Hard Work, Loyalty and Discipline Predict Entrepreneurial Orientation of Muslim Owner Managers?

Journal of Emerging Economies and Islamic Research ◽

10.24191/jeeir.v3i1.9049 ◽

2015 ◽

Vol 3 (1) ◽

pp. 31 ◽

Cited By ~ 2

Author(s):

Rohani Mohd ◽

Badrul Hisham Kamaruddin ◽

Khulida Kirana Yahya ◽

Elias Sanidas

Keyword(s):

Entrepreneurial Orientation ◽

Two Dimensions ◽

Hard Work ◽

Small Scale ◽

Sampling Frame ◽

Policy Makers ◽

Learning Institutions ◽

Innovative Orientation ◽

The Impact ◽

True Values

The purpose of the present study is twofold: first, to investigate the true values of Muslim owner managers; second, to examine the impact of these values on entrepreneurial orientations of Muslim small-scale entrepreneurs. 850 Muslim owner managers were selected randomly using the sampling frame provided by MajlisAmanah Rakyat Malaysia (MARA). 162 completed questionnaires were collected and analyzed. For this paper only two dimensions of entrepreneurial orientations were analyzed: proactive orientation and innovative orientation. Interestingly, the findings revealed that Muslim businessmen/women are honest, loyal, disciplined and hard working. Loyalty and honesty are positively related to proactive orientation, while discipline and hard-work are positively related to innovative orientation. The findings provide implications for existing relevant theories, policy makers, practitioners and learning institutions.

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