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How does environmentally induced R&D affect carbon productivity? A government support perspective

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  • Zhao, Shikuan
  • Cao, Yuequn
  • Hunjra, Ahmed Imran
  • Tan, Yan

Abstract

Environmentally induced R&D (ER&D) has been positioned as an essential factor in emission reduction and total factor carbon productivity (TFCP) improvement; however, how government support moderates ER&D's impact on TFCP is unclear. Using 30 Chinese provinces' panel data for 1998–2020, this paper applies the systemic generalized method of moments (SYS-GMM), dynamic threshold, and spatial Durbin models to explore ER&D's impact on TFCP under various types of government support. The results show a “U-shaped” ER&D-TFCP relationship. All types of government support can positively moderate ER&D's impact on regional TFCP. With government support as the threshold variable, ER&D's impact on green total factor productivity gradually increases. Moreover, ER&D and government support show a spatial spillover effect on TFCP. This paper offers policy implications about ER&D investment and TFCP improvement for China and other developing countries.

Suggested Citation

  • Zhao, Shikuan & Cao, Yuequn & Hunjra, Ahmed Imran & Tan, Yan, 2023. "How does environmentally induced R&D affect carbon productivity? A government support perspective," International Review of Economics & Finance, Elsevier, vol. 88(C), pages 942-961.
    • Handle: RePEc:eee:reveco:v:88:y:2023:i:c:p:942-961
    DOI: 10.1016/j.iref.2023.07.022
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    Citations

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    Cited by:

    1. Chenyang Liu & Xiuyi Shi & Cuixia Li, 2023. "Digital Technology, Factor Allocation and Environmental Efficiency of Dairy Farms in China: Based on Carbon Emission Constraint Perspective," Sustainability, MDPI, vol. 15(21), pages 1-22, October.
    2. Zhang, Han & Zheng, Jinhui & Hunjra, Ahmed Imran & Zhao, Shikuan & Bouri, Elie, 2024. "How does urban land use efficiency improve resource and environment carrying capacity?," Socio-Economic Planning Sciences, Elsevier, vol. 91(C).
    3. Yang, Haifei & Feng, Qi & Yu, Wanqing & Lyu, Jiayu, 2024. "Exploring the interplay of resource utilization, human capital, and FDI in enhancing national well-being: Evidence from OECD countries," Resources Policy, Elsevier, vol. 90(C).
    4. Liu, Tong & Lan, Bo, 2024. "On the conflict of natural resources abundance and export upgrading in upper-middle and high-income countries," Resources Policy, Elsevier, vol. 89(C).
    5. Yang, Xue & Zhang, Peng & Zhao, Zuoxiang & Koondhar, Mansoor Ahmed, 2024. "How disaggregated natural resources rents affect financial development: From the perspective of sustainable development," Resources Policy, Elsevier, vol. 92(C).
    6. Liu, Xiaoqian & Cifuentes-Faura, Javier & Zhao, Shikuan & Wang, Long, 2024. "The impact of government environmental attention on firms’ ESG performance: Evidence from China," Research in International Business and Finance, Elsevier, vol. 67(PA).
    7. Pan, Junyu & Hunjra, Ahmed Imran & Bruna, Maria Giuseppina & Zhao, Shikuan & Bouri, Elie, 2024. "Shaping sustainability: How corporate reputation can be enhanced under climate change conditions," Finance Research Letters, Elsevier, vol. 62(PA).

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