IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v16y2024i7p2622-d1362048.html
   My bibliography  Save this article

Do Innovation and Entrepreneurship Support Policies Promote Urban Green Transformation?—The Mediating Role of Fiscal Technology Expenditure

Author

Listed:
  • Junqi Wen

    (International Business School, Jinan University, Guangzhou 510632, China)

  • Yong Lan

    (International Business School, Jinan University, Guangzhou 510632, China)

  • Guoqin Bu

    (International Business School, Jinan University, Guangzhou 510632, China)

Abstract

This article takes the establishment of two batches of mass entrepreneurship and innovation demonstration bases in 2016 and 2017 as a quasi-natural experiment. It utilizes panel data from 284 cities in China from 2010 to 2021 to construct a multiple time point difference-in-difference (DID) model. This study finds that innovation and entrepreneurship support policies can effectively promote urban green transformation. The robustness of the model is ensured through parallel trend tests, placebo tests, difference-in-difference-in-difference models, PSM-DID, and other methods. A mechanism analysis reveals that fiscal technology expenditure partially mediates the process of innovation and entrepreneurship support policies affecting urban green transformation. A heterogeneity analysis indicates that innovation and entrepreneurship support policies have only a significant positive impact on the green transformation of eastern cities, (sub-)provincial cities, and cities with high green total factor productivity, suggesting that the effectiveness of innovation and entrepreneurship support policies may be influenced by the size of the urban economy. This article provides a theoretical basis and policy recommendations for better leveraging the effects of innovation and entrepreneurship support policies to address the dual challenges of economic and green transformation jointly.

Suggested Citation

  • Junqi Wen & Yong Lan & Guoqin Bu, 2024. "Do Innovation and Entrepreneurship Support Policies Promote Urban Green Transformation?—The Mediating Role of Fiscal Technology Expenditure," Sustainability, MDPI, vol. 16(7), pages 1-24, March.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:7:p:2622-:d:1362048
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/16/7/2622/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/16/7/2622/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. López, Ramón & Galinato, Gregmar I. & Islam, Asif, 2011. "Fiscal spending and the environment: Theory and empirics," Journal of Environmental Economics and Management, Elsevier, vol. 62(2), pages 180-198, September.
    2. Rath, Badri Narayan & Akram, Vaseem & Bal, Debi Prasad & Mahalik, Mantu Kumar, 2019. "Do fossil fuel and renewable energy consumption affect total factor productivity growth? Evidence from cross-country data with policy insights," Energy Policy, Elsevier, vol. 127(C), pages 186-199.
    3. Florian Noseleit, 2013. "Entrepreneurship, structural change, and economic growth," Journal of Evolutionary Economics, Springer, vol. 23(4), pages 735-766, September.
    4. Galindo, Miguel-Ángel & Méndez, María Teresa, 2014. "Entrepreneurship, economic growth, and innovation: Are feedback effects at work?," Journal of Business Research, Elsevier, vol. 67(5), pages 825-829.
    5. Festus Victor Bekun, 2022. "Mitigating Emissions in India: Accounting for the Role of Real Income, Renewable Energy Consumption and Investment in Energy," International Journal of Energy Economics and Policy, Econjournals, vol. 12(1), pages 188-192.
    6. Tone, Kaoru, 2002. "A slacks-based measure of super-efficiency in data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 143(1), pages 32-41, November.
    7. Kemfert, Claudia, 2005. "Induced technological change in a multi-regional, multi-sectoral, integrated assessment model (WIAGEM): Impact assessment of climate policy strategies," Ecological Economics, Elsevier, vol. 54(2-3), pages 293-305, August.
    8. Hall, Bronwyn H. & Helmers, Christian, 2013. "Innovation and diffusion of clean/green technology: Can patent commons help?," Journal of Environmental Economics and Management, Elsevier, vol. 66(1), pages 33-51.
    9. Zhu, Joe, 1998. "Data envelopment analysis vs. principal component analysis: An illustrative study of economic performance of Chinese cities," European Journal of Operational Research, Elsevier, vol. 111(1), pages 50-61, November.
    10. Yuge Ma & Thomas F. Thornton & Diana Mangalagiu & Jing Lan & Dina Hestad & Elena Apostoli Cappello & Sander Leeuw, 2020. "Co-creation, co-evolution and co-governance: understanding green businesses and urban transformations," Climatic Change, Springer, vol. 160(4), pages 621-636, June.
    11. Li, Ye & Chen, Yiyan, 2021. "Development of an SBM-ML model for the measurement of green total factor productivity: The case of pearl river delta urban agglomeration," Renewable and Sustainable Energy Reviews, Elsevier, vol. 145(C).
    12. Tong, Hefeng & Wang, Yan & Xu, Jiajun, 2020. "Green transformation in China: Structures of endowment, investment, and employment," Structural Change and Economic Dynamics, Elsevier, vol. 54(C), pages 173-185.
    13. W. Liu & W. Meng & X. Li & D. Zhang, 2010. "DEA models with undesirable inputs and outputs," Annals of Operations Research, Springer, vol. 173(1), pages 177-194, January.
    14. Mao, Wenxin & Wang, Wenping & Sun, Huifang & Yao, Peiyi & Wang, Xiaolei & Luo, Dang, 2021. "Urban industrial transformation patterns under natural resource dependence: A rule mining technique," Energy Policy, Elsevier, vol. 156(C).
    15. Xiaosheng Li & Yunxia Shu & Xin Jin, 2022. "Environmental regulation, carbon emissions and green total factor productivity: a case study of China," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(2), pages 2577-2597, February.
    16. Zhou, P. & Ang, B.W. & Wang, H., 2012. "Energy and CO2 emission performance in electricity generation: A non-radial directional distance function approach," European Journal of Operational Research, Elsevier, vol. 221(3), pages 625-635.
    17. Raihan, Asif & Pavel, Monirul Islam & Muhtasim, Dewan Ahmed & Farhana, Sadia & Faruk, Omar & Paul, Arindrajit, 2023. "The role of renewable energy use, technological innovation, and forest cover toward green development: Evidence from Indonesia," Innovation and Green Development, Elsevier, vol. 2(1).
    18. Song, Malin & Du, Juntao & Tan, Kim Hua, 2018. "Impact of fiscal decentralization on green total factor productivity," International Journal of Production Economics, Elsevier, vol. 205(C), pages 359-367.
    19. Jaryn Bradford & Evan D. G. Fraser, 2008. "Local authorities, climate change and small and medium enterprises: identifying effective policy instruments to reduce energy use and carbon emissions," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 15(3), pages 156-172, May.
    20. Tone, Kaoru, 2001. "A slacks-based measure of efficiency in data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 130(3), pages 498-509, May.
    21. Matthew Thompson, 2019. "Playing with the Rules of the Game: Social Innovation for Urban Transformation," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 43(6), pages 1168-1192, November.
    Full references (including those not matched with items on IDEAS)

    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. Sheng Xu & Wenran Pan & Demei Wen, 2023. "Do Carbon Emission Trading Schemes Promote the Green Transition of Enterprises? Evidence from China," Sustainability, MDPI, vol. 15(8), pages 1-28, April.
    2. Wang, Mei & Xu, Mi & Ma, Shaojun, 2021. "The effect of the spatial heterogeneity of human capital structure on regional green total factor productivity," Structural Change and Economic Dynamics, Elsevier, vol. 59(C), pages 427-441.
    3. Fei Peng & Shibiao Zhou & Tao Ding & Huaqing Wu, 2023. "Impact of fiscal expenditure stress on green transformation risk: evidence from China education authority reform," Economic Change and Restructuring, Springer, vol. 56(6), pages 4565-4601, December.
    4. Can Zhang & Jixia Li, 2024. "The Impact of Official Promotion Incentives on Urban Ecological Welfare Performance and Its Spatial Effect," Sustainability, MDPI, vol. 16(7), pages 1-29, April.
    5. Gómez-Calvet, Roberto & Conesa, David & Gómez-Calvet, Ana Rosa & Tortosa-Ausina, Emili, 2014. "Energy efficiency in the European Union: What can be learned from the joint application of directional distance functions and slacks-based measures?," Applied Energy, Elsevier, vol. 132(C), pages 137-154.
    6. Yuxin Fang & Hongjun Cao & Jihui Sun, 2022. "Impact of Artificial Intelligence on Regional Green Development under China’s Environmental Decentralization System—Based on Spatial Durbin Model and Threshold Effect," IJERPH, MDPI, vol. 19(22), pages 1-27, November.
    7. Lv, Chengchao & Song, Jie & Lee, Chien-Chiang, 2022. "Can digital finance narrow the regional disparities in the quality of economic growth? Evidence from China," Economic Analysis and Policy, Elsevier, vol. 76(C), pages 502-521.
    8. Li, Bo & Han, Yukai & Wang, Chensheng & Sun, Wei, 2022. "Did civilized city policy improve energy efficiency of resource-based cities? Prefecture-level evidence from China," Energy Policy, Elsevier, vol. 167(C).
    9. Ruomeng Zhou & Yunsheng Zhang, 2023. "Measurement of Urban Green Total Factor Productivity and Analysis of Its Temporal and Spatial Evolution in China," Sustainability, MDPI, vol. 15(12), pages 1-32, June.
    10. Qingxian An & Haoxun Chen & Jie Wu & Liang Liang, 2015. "Measuring slacks-based efficiency for commercial banks in China by using a two-stage DEA model with undesirable output," Annals of Operations Research, Springer, vol. 235(1), pages 13-35, December.
    11. Halkos, George & Petrou, Kleoniki Natalia, 2018. "A critical review of the main methods to treat undesirable outputs in DEA," MPRA Paper 90374, University Library of Munich, Germany.
    12. Liu, John S. & Lu, Louis Y.Y. & Lu, Wen-Min, 2016. "Research fronts in data envelopment analysis," Omega, Elsevier, vol. 58(C), pages 33-45.
    13. Mushtaq Taleb & Ruzelan Khalid & Ali Emrouznejad & Razamin Ramli, 2023. "Environmental efficiency under weak disposability: an improved super efficiency data envelopment analysis model with application for assessment of port operations considering NetZero," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(7), pages 6627-6656, July.
    14. Chen, Jiabin & Wen, Shaobo & Liu, Yuchen, 2022. "Research on the efficiency of the mining industry in China from the perspective of time and space," Resources Policy, Elsevier, vol. 75(C).
    15. Song, Malin & Zhu, Shuai & Wang, Jianlin & Zhao, Jiajia, 2020. "Share green growth: Regional evaluation of green output performance in China," International Journal of Production Economics, Elsevier, vol. 219(C), pages 152-163.
    16. Wanfang Shen & Guoliang Yang & Zhongbao Zhou & Wenbin Liu, 2019. "DEA models with Russell measures," Annals of Operations Research, Springer, vol. 278(1), pages 337-359, July.
    17. Ke Mao & Pierre Failler, 2022. "Local Government Debt and Green Total Factor Productivity—Empirical Evidence from Chinese Cities," IJERPH, MDPI, vol. 19(19), pages 1-13, September.
    18. Sisi Liu & Suchang Yang & Ningyi Liu, 2024. "Estimation of Urban High-Quality Development Level Using a Three-Stage Stacks-Based Measure Model: A Case Study of Urban Agglomerations in the Yellow River Basin," Sustainability, MDPI, vol. 16(18), pages 1-24, September.
    19. Ning Li & Ruiling Li & Shangshang Yu, 2024. "Managerial Myopia and Enterprise Green Total Factor Productivity: Perspectives on the Supervisory Effect and Incentive Effect," Sustainability, MDPI, vol. 16(16), pages 1-21, August.
    20. Jiyou Xiang & Linfang Tan & Da Gao, 2024. "Unlocking Green Patterns: The Local and Spatial Impacts of Green Finance on Urban Green Total Factor Productivity," Sustainability, MDPI, vol. 16(18), pages 1-17, September.

    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:16:y:2024:i:7:p:2622-:d:1362048. 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.