Be Green to Be Innovative: The Role of Government Subsidies

Corporate environmental investment has long been recognized as a non-market strategy that helps secure both economic and social benefits. However, we know much less about how environmental investment affects corporate innovation. We argue that investment in environmental protection is an important source of institutional legitimacy for firms to secure government resources, thus providing financial support for corporate innovation activities. Using a sample of Chinese industrial firms, we find that firms investing more in environmental protection can receive more government subsidies and then have better innovation performance. This study emphasizes the mechanism of government resources, which enriches our understanding of the effect of environmental investment on corporate innovation.

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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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Leclerc: The Growth Challenge

Kellogg School of Management Cases ◽

10.1108/case.kellogg.2016.000182 ◽

2017 ◽

pp. 1-10

Author(s):

Tim Calkins ◽

Julien Dangles

Keyword(s):

Optimal Growth ◽

Senior Management ◽

Growth Strategy ◽

Retail Industry ◽

Government Regulations ◽

Role Of Government ◽

Market Strategy ◽

Playing Field ◽

Marketing Planning

The senior management team at Leclerc, one of the largest retailers in France, is considering how best to maintain growth in the highly regulated French retail industry. Strict limits on pricing and store construction will significantly limit Leclerc's flexibility; many of the traditional growth levers cannot be used. These regulations also have a major impact on competition. The executives at Leclerc must identify the optimal growth plan and then consider whether it will deliver the desired growth.The case can be used to examine three areas: growth strategy for established businesses, non-market strategy, and marketing planning. It provides an interesting look at the French retail industry and highlights the role of government regulations in shaping the competitive playing field.

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Role of government subsidies in the new energy vehicle charging infrastructure industry: a three-party game perspective

Chinese Journal of Population Resources and Environment ◽

10.1016/j.cjpre.2021.12.016 ◽

2021 ◽

Vol 19 (2) ◽

pp. 143-150

Keyword(s):

Role Of Government ◽

Charging Infrastructure ◽

Government Subsidies ◽

New Energy ◽

Vehicle Charging ◽

New Energy Vehicle

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Understanding Vietnamese consumers’ purchase intentionstoward green electronic productsin Hochiminh city –adapted tpb perspective

Science and Technology Development Journal ◽

10.32508/stdj.v18i4.970 ◽

2015 ◽

Vol 18 (4) ◽

pp. 55-63

Author(s):

Ngoc Bich Nguyen ◽

Nam Van Nguyen ◽

Bich Huy Hai Bui

Keyword(s):

Environmental Protection ◽

Environmental Sustainability ◽

Environmental Issues ◽

Purchase Intentions ◽

Environmental Knowledge ◽

High Rate ◽

Role Of Government ◽

Electronic Products ◽

Warming Climate

Keeping the balance between high rate of economic growth and environmental sustainability is the most important task of many nations, especially developing nations including VietNam. According toGardner & Stern [1],many environmental issues such as global warming, climate change… due to pollution, loss of biodiversity are intrinsically related to human behavior. Besides the role of Government and business in environmental protection, individual purchase behaviour has a big effect on environmental protection, too. Hencethis research applies the theory of Planned Behavior to examine the factors that have impact on Vietnamese Consumers’ Purchase Intentions toward Green Electronic Products in Hochiminh City. Through directly interviewing 193 consumers in HCM city, the resultshowed that the most affected factor of Consumers’ Purchase Intentions toward Green Electronic Products is environmental knowledge(β =0,283),recognized consumer effectiveness(β =0,236), ecolabel (β =0,217), with adjusted R2is of 19,4%.

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Post-Socialist Transition and Environmental Protection

Journal of Public Policy ◽

10.1017/s0143814x00000957 ◽

1993 ◽

Vol 13 (1) ◽

pp. 89-109 ◽

Cited By ~ 1

Author(s):

WenFang Tang

Keyword(s):

Environmental Protection ◽

Pollution Control ◽

Institutional Characteristics ◽

Market Mechanisms ◽

Role Of Government ◽

Initial Stage ◽

Governmental Intervention ◽

Near Future ◽

Sulphur Dioxide Emission

ABSTRACTThis article examines the institutional characteristics of market and centrally planned economies and their impact on the environment. It argues that while the planned economies are utilising market mechanisms in environmental protection, their market counterparts are facing more and more environmental problems that require governmental intervention. Using the latest statistical information, the records of sulphur dioxide emission under market and planning over the past twenty years are compared. The findings show that while planned economies generated more pollution due to energy inefficiency, they were nevertheless quite effective in reducing pollution under centralised coordination. This is particularly true at the initial stage of pollution control. Although the industrialised market economies were capable of diverting resources into pollution control, they were equally capable of causing environmental disruption, especially at their early stages of industrialisation. Finally, it is argued that environmental protection in post-socialist societies is likely to experience a downturn in the near future. This is due to the decreasing role of government coordination, the lack of a legal system, and the difficulty of developing a well-functioning market.

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The Role of Government Subsidies in Increasing Consumption and Economic Growth in Efforts to Reduce Poverty in Indonesia

ASIAN Economic and Business Development ◽

10.54204/27761111 ◽

2021 ◽

Vol 1 (1) ◽

pp. 43-46

Author(s):

Yusi Okta Rama ◽

◽

Sri Harnani

Keyword(s):

Economic Growth ◽

Poverty Reduction ◽

Moving Average ◽

Secondary Data ◽

Poverty Line ◽

Poor People ◽

Role Of Government ◽

Government Subsidies ◽

Public Consumption

This study examines the role of government subsidies in increasing consumption and economic growth in poverty reduction efforts in Indonesia. This study uses secondary data from world banks and is processed by regression using the moving average autoregression method. We find that subsidies without empowering the poor in contributing to the economy only increase public consumption without reducing the number of poor people. Where more and more subsidies are given, it increases the number of people living in poverty line with an income below 3.2 USD per day.

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Environmental Protection Investment and Enterprise Innovation: Evidence from Chinese Listed Companies

10.21203/rs.3.rs-694322/v1 ◽

2021 ◽

Author(s):

Xinfeng Jiang ◽

Ahsan Akbar ◽

Eglantina Hysa ◽

Minhas Akbar

Keyword(s):

Environmental Protection ◽

Crowding Out ◽

Chinese Enterprises ◽

Corporate Managers ◽

Listed Firms ◽

Innovation Activities ◽

Corporate Innovation ◽

Chinese Listed Companies ◽

Enterprise Innovation ◽

The Government

Abstract China has emerged as the world’s second-largest economy due to its rapid industrial expansion and phenomenal economic growth in recent decades. Though, this exponential economic turnaround has been fueled by widespread energy consumption, making China among the largest pollutant emitters in the world. Chinese enterprises have come under greater scrutiny and the government has mandated Chinese companies to undertake environmental protection investment. However, little is known that how these mandatory environmental investments affect Chinese firms’ ability to undertake R&D expenditures. This study employs data of China’s A-share listed firms during 2008-2016 to examine the nexus between environmental protection investment and corporate innovation. Our findings conjecture the crowding-out effects of environmental investments on enterprise innovation-related expenditures. Furthermore, additional empirical testing reveals that R&D undertakings of state-owned and politically connected firms are not affected by environmental investments. Likewise, corporate innovation activities are not negatively influenced by environmental investments in polluting industries. The study findings offer fresh insights to regulators, corporate managers, and stakeholders. Our results are robust to alternate econometric specifications and alternate variable specifications.

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MODERN CHALLENGES AND NEW OPPORTUNITIES FOR FISCAL ACTIVATION OF ECONOMIC GROWTH FACTORS

10.30525/978-9934-26-108-4-3 ◽

2021 ◽

Author(s):

Inna Lunina ◽

◽

Olena Bilousova ◽

Nataliia Nazukova ◽

◽

...

Keyword(s):

Economic Growth ◽

Public Investment ◽

Economic Effects ◽

Capital Investments ◽

State Support ◽

Role Of Government ◽

Innovation Activities ◽

Government Education ◽

Business Entities

The article dwells upon the problematic issues of present development of Ukrainian economy and social sphere through the lenses of changes caused by the pandemic. Practical approaches to state support for business entities in certain EU countries to overcome the socio-economic effects of the pandemic were summarised. The priorities of government capital investments aimed at medium-term national economic development and the instruments of fiscal support for investment and innovation activities of enterprises are determined in the article. The role of government education financing is clarified and a conclusion on the prior role of budgetary financing of preschool and primary education for the formation of future factors of economic growth is made. The necessity of balancing resources for human capital formation between the budget, business sector and households is substantiated. Specific measures of state support for families with children are proposed, which will make it possible to activate educational driver of economic growth in the pandemic circumstances. Based on the results of the study, proposals were formed on the regulatory and legal support of fiscal measures aimed at enhancing economic growth, which cover the spheres of education, science and innovation, public investment, and the formation of financial resources of the state and enterprises.

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A study on Inclusive Finance and Enterprise Environmental Investment Single-variable test based on bivariate mechanism

E3S Web of Conferences ◽

10.1051/e3sconf/202123501073 ◽

2021 ◽

Vol 235 ◽

pp. 01073

Author(s):

Fei Zheng ◽

Han Liu ◽

Teng Li ◽

Peipei Qiu

Keyword(s):

Environmental Protection ◽

Financial Services ◽

Empirical Test ◽

Environmental Investment ◽

Environmental Decision Making ◽

Deep Integration ◽

The Impact ◽

National Environmental ◽

Rapid Transformation

The deep integration of digital technology and finance is driving a rapid transformation of financial services in China. Inclusive Finance, different from traditional finance, how to play the role of “inclusive” on environmental decision-making to promote the national environmental protection work? There is little literature to inquire the role of Inclusive Finance at the micro level. This paper discusses the impact of inclusive finance on enterprise environmental protection investment and its conduction mechanism. The study found that inclusive finance could drive enterprise environmental investment. In particular, the usage depth of inclusive finance has a sustainable effect on the promotion of environmental protection investment. Furthermore, the empirical test of the mechanism shows that inclusive finance can break through the mismatch problems of traditional finance and display a better “inclusive” feature to ease the credit constraints and enhance their ability of technological innovation, which help enterprise to invest in environmental protection. Based on our findings, we provide empirical evidence and policy options for the optimization of inclusive finance to help environment protection.

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