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Promote Green Innovation in Manufacturing Enterprises in the Aspect of Government Subsidies in China

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  • Xiaojun Sun

    (School of Management Science and Real Estate, Chongqing University, Chongqing 400044, China)

  • Jing Tang

    (School of Management Science and Real Estate, Chongqing University, Chongqing 400044, China)

  • Shilong Li

    (School of Management Science and Real Estate, Chongqing University, Chongqing 400044, China
    Center for Construction Economy and Management, Chongqing University, Chongqing 400044, China)

Abstract

Green innovation is vital for manufacturing enterprises to achieve a balance between economic, environmental and social benefits. This paper empirically investigates the mechanisms of government subsidies, R&D investment and public participatory environmental regulation on green innovation in manufacturing enterprises, selecting a sample of 1308 manufacturing firms listed on Chinese A-shares from 2010–2019. The results show that government subsidies can significantly promote green innovation in manufacturing enterprises, with private enterprises being more pronounced. R&D investment plays a mediating role in green innovation in manufacturing enterprises, while public participatory environmental regulation has a negative impact. The moderating effect of public participatory environmental regulation on government subsidies is different on different green patents, with a more negative effect on green invention patents than on green utility model patents. Public participatory environmental regulation has a negative moderating effect on the green innovation of state-owned manufacturing enterprises while having no significant effect on private manufacturing enterprises.

Suggested Citation

  • Xiaojun Sun & Jing Tang & Shilong Li, 2022. "Promote Green Innovation in Manufacturing Enterprises in the Aspect of Government Subsidies in China," IJERPH, MDPI, vol. 19(13), pages 1-16, June.
    • Handle: RePEc:gam:jijerp:v:19:y:2022:i:13:p:7864-:d:848661
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