IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v14y2022i13p8169-d855645.html
   My bibliography  Save this article

Improving the Innovative Performance of Renewable Energy Enterprises in China: Effects of Subsidy Policy and Intellectual Property Legislation

Author

Listed:
  • Xiaofeng Xu

    (International School of Law and Finance, East China University of Political Science and Law, Shanghai 200042, China
    Legal Research Center of Optimizing Doing Business Environment, East China University of Political Science and Law, Shanghai 200042, China
    Energy Law and Policy Institute, East China University of Political Science and Law, Shanghai 200042, China)

  • Xiangyu Chen

    (International School of Law and Finance, East China University of Political Science and Law, Shanghai 200042, China
    Legal Research Center of Optimizing Doing Business Environment, East China University of Political Science and Law, Shanghai 200042, China)

  • Yi Xu

    (School of Economics and Management, Tongji University, Shanghai 200092, China)

  • Tao Wang

    (College of Environmental Science and Engineering, Tongji University, Shanghai 200092, China
    UNEP-Tongji Institute of Environment for Sustainable Development, Tongji University, Shanghai 200092, China
    Key Laboratory of Cities’ Mitigation and Adaptation to Climate Change in Shanghai, Shanghai 200092, China)

  • Yifan Zhang

    (Koguan School of Law, Shanghai Jiao Tong University, Shanghai 200240, China)

Abstract

Energy efficiency and emissions reductions are effective initiatives to address climate change and energy security. China has increased government subsidies and intellectual property protection (IPP) intensity to promote technological innovation in the renewable energy sector. This paper selects samples of geothermal, wind, and solar energy companies and examines whether the two initiatives mentioned above can improve company innovation, and assesses their action pathways. The results reveal that: (i) government subsidies can directly facilitate renewable energy enterprises’ innovative performance, and research and development (R&D) input served as a medium; and (ii) the intensity of IPP moderation needed for geothermal and solar enterprises to utilize the government subsidy to enhance innovation. The government should consider the differences of different sub-sectors of renewable energy when increasing subsidies. Better laws and policies are needed to strengthen the protection of intellectual property rights and stimulate innovation in renewable energy enterprises.

Suggested Citation

  • Xiaofeng Xu & Xiangyu Chen & Yi Xu & Tao Wang & Yifan Zhang, 2022. "Improving the Innovative Performance of Renewable Energy Enterprises in China: Effects of Subsidy Policy and Intellectual Property Legislation," Sustainability, MDPI, vol. 14(13), pages 1-24, July.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:13:p:8169-:d:855645
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/14/13/8169/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/14/13/8169/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Auriol, Emmanuelle & Biancini, Sara & Paillacar, Rodrigo, 2019. "Universal intellectual property rights: Too much of a good thing?," International Journal of Industrial Organization, Elsevier, vol. 65(C), pages 51-81.
    2. Matsuo, Tyeler & Schmidt, Tobias S., 2019. "Managing tradeoffs in green industrial policies: The role of renewable energy policy design," World Development, Elsevier, vol. 122(C), pages 11-26.
    3. Höckner, Jonas & Voswinkel, Simon & Weber, Christoph, 2020. "Market distortions in flexibility markets caused by renewable subsidies – The case for side payments," Energy Policy, Elsevier, vol. 137(C).
    4. Tan, Yongxian & Tian, Xuan & Zhang, Xinde & Zhao, Hailong, 2020. "The real effect of partial privatization on corporate innovation: Evidence from China's split share structure reform," Journal of Corporate Finance, Elsevier, vol. 64(C).
    5. Silva, Nuno & Fuinhas, José Alberto & Koengkan, Matheus, 2021. "Assessing the advancement of new renewable energy sources in Latin American and Caribbean countries," Energy, Elsevier, vol. 237(C).
    6. Hottenrott, Hanna & Lopes-Bento, Cindy, 2014. "(International) R&D collaboration and SMEs: The effectiveness of targeted public R&D support schemes," Research Policy, Elsevier, vol. 43(6), pages 1055-1066.
    7. Ahn, Joon Mo & Lee, Weonvin & Mortara, Letizia, 2020. "Do government R&D subsidies stimulate collaboration initiatives in private firms?," Technological Forecasting and Social Change, Elsevier, vol. 151(C).
    8. Wen, Jun & Okolo, Chukwuemeka Valentine & Ugwuoke, Ifeanyi Celestine & Kolani, Kibir, 2022. "Research on influencing factors of renewable energy, energy efficiency, on technological innovation. Does trade, investment and human capital development matter?," Energy Policy, Elsevier, vol. 160(C).
    9. Shahzad, Umer & Schneider, Nicolas & Ben Jebli, Mehdi, 2021. "How coal and geothermal energies interact with industrial development and carbon emissions? An autoregressive distributed lags approach to the Philippines," Resources Policy, Elsevier, vol. 74(C).
    10. Guo, Feng & Zou, Bo & Zhang, Xiaofei & Bo, Qingwen & Li, Kai, 2020. "Financial slack and firm performance of SMMEs in China: Moderating effects of government subsidies and market-supporting institutions," International Journal of Production Economics, Elsevier, vol. 223(C).
    11. Bai, Rui & Lin, Boqiang & Liu, Xiying, 2021. "Government subsidies and firm-level renewable energy investment: New evidence from partially linear functional-coefficient models," Energy Policy, Elsevier, vol. 159(C).
    12. Jung, Seung Hwan & Feng, Tianjun, 2020. "Government subsidies for green technology development under uncertainty," European Journal of Operational Research, Elsevier, vol. 286(2), pages 726-739.
    13. Song, Yang & Sahut, Jean-Michel & Zhang, Zhiyuan & Tian, Yifan & Hikkerova, Lubica, 2022. "The effects of government subsidies on the sustainable innovation of university-industry collaboration," Technological Forecasting and Social Change, Elsevier, vol. 174(C).
    14. Cergibozan, Raif, 2022. "Renewable energy sources as a solution for energy security risk: Empirical evidence from OECD countries," Renewable Energy, Elsevier, vol. 183(C), pages 617-626.
    15. Yang, Rui & Tang, Wansheng & Zhang, Jianxiong, 2021. "Technology improvement strategy for green products under competition: The role of government subsidy," European Journal of Operational Research, Elsevier, vol. 289(2), pages 553-568.
    16. Zhang, Dongyang & Kong, Qunxi, 2022. "Renewable energy policy, green investment, and sustainability of energy firms," Renewable Energy, Elsevier, vol. 192(C), pages 118-133.
    17. Ginarte, Juan C. & Park, Walter G., 1997. "Determinants of patent rights: A cross-national study," Research Policy, Elsevier, vol. 26(3), pages 283-301, October.
    18. Kafouros, Mario & Wang, Chengqi & Piperopoulos, Panagiotis & Zhang, Mingshen, 2015. "Academic collaborations and firm innovation performance in China: The role of region-specific institutions," Research Policy, Elsevier, vol. 44(3), pages 803-817.
    19. Li, Zhimin & Pan, Yanchun & Yang, Wen & Ma, Jianhua & Zhou, Ming, 2021. "Effects of government subsidies on green technology investment and green marketing coordination of supply chain under the cap-and-trade mechanism," Energy Economics, Elsevier, vol. 101(C).
    20. Du, Julan & Lu, Yi & Tao, Zhigang, 2008. "Economic institutions and FDI location choice: Evidence from US multinationals in China," Journal of Comparative Economics, Elsevier, vol. 36(3), pages 412-429, September.
    21. Kim, Sangil & Park, Keon Chul, 2021. "Government funded R&D collaboration and it's impact on SME's business performance," Journal of Informetrics, Elsevier, vol. 15(3).
    22. Beltrami, Filippo & Fontini, Fulvio & Grossi, Luigi, 2021. "The value of carbon emission reduction induced by Renewable Energy Sources in the Italian power market," Ecological Economics, Elsevier, vol. 189(C).
    23. Khan, Khalid & Su, Chi Wei & Rehman, Ashfaq U. & Ullah, Rahman, 2022. "Is technological innovation a driver of renewable energy?," Technology in Society, Elsevier, vol. 70(C).
    24. Qi, Xiaoyan & Guo, Yanshan & Guo, Pibin & Yao, Xilong & Liu, Xiuli, 2022. "Do subsidies and R&D investment boost energy transition performance? Evidence from Chinese renewable energy firms," Energy Policy, Elsevier, vol. 164(C).
    25. Suki, Norazah Mohd & Suki, Norbayah Mohd & Sharif, Arshian & Afshan, Sahar & Jermsittiparsert, Kittisak, 2022. "The role of technology innovation and renewable energy in reducing environmental degradation in Malaysia: A step towards sustainable environment," Renewable Energy, Elsevier, vol. 182(C), pages 245-253.
    26. Wu, Ting & Yang, Shuwang & Tan, Jingjing, 2020. "Impacts of government R&D subsidies on venture capital and renewable energy investment -- an empirical study in China," Resources Policy, Elsevier, vol. 68(C).
    27. Hu, Xiaotian & Yin, Xiaopeng, 2022. "Do stronger intellectual property rights protections raise productivity within the context of trade liberalization? Evidence from China," Economic Modelling, Elsevier, vol. 110(C).
    28. Li, Xiao-Lin & Li, Jingya & Wang, Jia & Si, Deng-Kui, 2021. "Trade policy uncertainty, political connection and government subsidy: Evidence from Chinese energy firms," Energy Economics, Elsevier, vol. 99(C).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Lin, Kun, 2023. "The impact of intellectual property protection on business performance of high-tech enterprises: The mediating effect of political-business relations," Finance Research Letters, Elsevier, vol. 54(C).
    2. Xu, Xiaofeng & Cui, Xiaodan & Chen, Xiangyu & Zhou, Yichen, 2022. "Impact of government subsidies on the innovation performance of the photovoltaic industry: Based on the moderating effect of carbon trading prices," Energy Policy, Elsevier, vol. 170(C).
    3. Janter Napitupulu & Suwarno Suwarno & Catra Indra Cahyadi & Sukarwoto Sukarwoto, 2024. "Evaluation and Modeling of Green Energy Consumption in North Sumatra, Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 14(1), pages 570-578, January.
    4. Hong Chen & Haowen Zhu & Tianchen Sun & Xiangyu Chen & Tao Wang & Wenhong Li, 2023. "Does Environmental Regulation Promote Corporate Green Innovation? Empirical Evidence from Chinese Carbon Capture Companies," Sustainability, MDPI, vol. 15(2), pages 1-24, January.
    5. Liu, Zhihong & ul Islam, Misbah & Alarifi, Ghadah Abdulrahman & Cong, Phan The & Khudoykulov, Khurshid & Quynh, Le Nhu & Hossain, Md. Shamim, 2023. "Does energy efficiency mediate a green economic recovery? Evidence from China," Economic Analysis and Policy, Elsevier, vol. 78(C), pages 802-815.
    6. Guangwei Zhang & Yahan Shi & Nuozhou Huang, 2024. "Government Subsidies, Green Innovation, and Firm Total Factor Productivity of Listed Artificial Intelligence Firms in China," Sustainability, MDPI, vol. 16(8), pages 1-20, April.
    7. Dongdong Song & Yuewen Liu & Tianbao Qin & Hongsong Gu & Yang Cao & Hongjun Shi, 2022. "Overview of the Policy Instruments for Renewable Energy Development in China," Energies, MDPI, vol. 15(18), pages 1-14, September.
    8. Bo Zeng & Weimin Zhang & Defang Ma & Chenyang Zhang & Xiao Liu, 2023. "The Impact of Group Control on the Effectiveness of Enterprise Innovation: An Empirical Study," Sustainability, MDPI, vol. 15(13), pages 1-15, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jinxuan Song & Xu Yan, 2023. "Impact of Government Subsidies, Competition, and Blockchain on Green Supply Chain Decisions," Sustainability, MDPI, vol. 15(4), pages 1-27, February.
    2. Weiling Wang & Yongjian Wang & Xiaoqing Zhang & Dalin Zhang, 2021. "Effects of Government Subsidies on Production and Emissions Reduction Decisions under Carbon Tax Regulation and Consumer Low-Carbon Awareness," IJERPH, MDPI, vol. 18(20), pages 1-17, October.
    3. Zheng, Shiyuan & Jiang, Changmin & Fu, Xiaowen & Ge, Ying-En & Shu, Jia, 2022. "Subsidies for green technology adoption under uncertain demand and incomplete information," Omega, Elsevier, vol. 112(C).
    4. Junjian Wu & Jennifer Shang, 2021. "Green Credit Financing Equilibrium under Government Subsidy and Supply Uncertainty," Sustainability, MDPI, vol. 13(22), pages 1-22, November.
    5. Auriol, Emmanuelle & Biancini, Sara & Paillacar, Rodrigo, 2023. "Intellectual property rights protection and trade: An empirical analysis," World Development, Elsevier, vol. 162(C).
    6. Akan, Taner & Gündüz, Halil İbrahim & Emirmahmutoğlu, Furkan & Işık, Ali Haydar, 2023. "Disaggregating renewable energy-growth nexus: W-ARDL and W-Toda-Yamamoto approaches," Renewable and Sustainable Energy Reviews, Elsevier, vol. 188(C).
    7. Elias Carayannis & Pantelis Kostis & Hasan Dinçer & Serhat Yüksel, 2024. "Quality Function Deployment-Oriented Strategic Outlook to Sustainable Energy Policies Based on Quintuple Innovation Helix," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(2), pages 6761-6779, June.
    8. Lin, Boqiang & Xie, Yongjing, 2024. "How feed-in-tariff subsidies affect renewable energy investments in China? New evidence from firm-level data," Energy, Elsevier, vol. 294(C).
    9. Ofori, Elvis K. & Bekun, Festus V. & Gyamfi, Bright Akwasi & Ali, Ernest B. & Onifade, Stephen T. & Asongu, Simplice A., 2024. "Prospect of trade and innovation in renewable energy deployment: A comparative analysis between BRICS and MINT Countries," Renewable Energy, Elsevier, vol. 229(C).
    10. Lin, Boqiang & Xie, Yongjing, 2024. "Effect of renewable energy subsidy policy on firms’ total factor productivity: The threshold effect," Energy Policy, Elsevier, vol. 192(C).
    11. Xu, Xin & Huang, Shupei & Lucey, Brian M. & An, Haizhong, 2023. "The impacts of climate policy uncertainty on stock markets: Comparison between China and the US," International Review of Financial Analysis, Elsevier, vol. 88(C).
    12. Liang Ma & Weiqiang Hu & Ru Liang, 2024. "The Impact of the Industrial Internet on the Innovation and Development Level of China’s Manufacturing Industry: Under the Perspective of Government Incentives," Sustainability, MDPI, vol. 16(10), pages 1-25, May.
    13. Lin, Boqiang & Xie, Jiawen, 2023. "The role of renewable energy alliances in enhancing corporate innovation: Evidence from China," Renewable Energy, Elsevier, vol. 219(P1).
    14. Lin, Boqiang & Xie, Yongjing, 2023. "The impact of government subsidies on capacity utilization in the Chinese renewable energy industry: Does technological innovation matter?," Applied Energy, Elsevier, vol. 352(C).
    15. Danlei Feng & Mingzhao Hu & Lingdi Zhao & Sha Liu, 2022. "The Impact of Firm Heterogeneity and External Factor Change on Innovation: Evidence from the Vehicle Industry Sector," Sustainability, MDPI, vol. 14(11), pages 1-15, May.
    16. Ma, Yanbai & Lu, Ling & Cui, Jingbo & Shi, Xunpeng, 2024. "Can green credit policy stimulate firms’ green investments?," International Review of Economics & Finance, Elsevier, vol. 91(C), pages 123-137.
    17. Niu, Baozhuang & Zhang, Nan & Zhang, Jianhua, 2024. "How to Induce Multinational Firms’ Local Sourcing to Break Carbon Lock-in?," European Journal of Operational Research, Elsevier, vol. 315(2), pages 613-625.
    18. Yu, Vincent F. & Le, Thi Huynh Anh & Gupta, Jatinder N.D., 2023. "Sustainable microgrid design with peer-to-peer energy trading involving government subsidies and uncertainties," Renewable Energy, Elsevier, vol. 206(C), pages 658-675.
    19. Du, Shaofu & Huang, Chong & Yan, Xia & Tang, Wenzhi, 2024. "Voluntary green technology adoption: The effects of regulatory uncertainty and competition," European Journal of Operational Research, Elsevier, vol. 315(2), pages 528-540.
    20. Fu, Ke & Li, Yanzhi & Mao, Huiqiang & Miao, Zhaowei, 2023. "Firms’ production and green technology strategies: The role of emission asymmetry and carbon taxes," European Journal of Operational Research, Elsevier, vol. 305(3), pages 1100-1112.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:14:y:2022:i:13:p:8169-:d:855645. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.