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The impact of fiscal technology expenditures on innovation drive and carbon emissions in China

Author

Listed:
  • Jiandong Chen

    (School of Public Administration, Southwestern University of Finance and Economics, Chengdu)

  • Yuqing Li

    (School of Public Administration, Southwestern University of Finance and Economics, Chengdu)

  • Yiyin Xu

    (Business School of Chengdu University)

  • Michael Vardanyan

    (LEM - Lille économie management - UMR 9221 - UA - Université d'Artois - UCL - Université catholique de Lille - Université de Lille - CNRS - Centre National de la Recherche Scientifique)

  • Zhiyang Shen

    (IESEG School of Managementg, LEM - Lille économie management - UMR 9221 - UA - Université d'Artois - UCL - Université catholique de Lille - Université de Lille - CNRS - Centre National de la Recherche Scientifique)

  • Malin Song

    (Collaborative Innovation Center for Ecological Economics and Management, Anhui University of Finance and Economics, Bengbu)

Abstract

China's central government has identified the reduction of carbon emissions as an important strategic goal for achieving economic and social progress. Innovation is the main driver behind these goals, and fiscal technology expenditures are a crucial policy instrument that can influence such innovation. We use a panel of 277 Chinese prefecture-level cities from 2010 to 2019 and a fixed effects econometric model to assess the impact of fiscal technology expenditures on CO2 and study the transmission mechanism underlying this relationship. Our results suggest that public support of research and development initiatives can effectively curb regional carbon emission intensity. Moreover, this effect is particularly strong in areas characterized by relatively low economic growth rates and fiscal pressure. In addition, the analysis of the underlying transmission mechanism suggests that public spending on science and technology can promote emission reduction via investment in digital and green innovation. Hence, it is imperative to increase fiscal technology expenditures in order to help curb carbon emissions at the local level.

Suggested Citation

  • Jiandong Chen & Yuqing Li & Yiyin Xu & Michael Vardanyan & Zhiyang Shen & Malin Song, 2023. "The impact of fiscal technology expenditures on innovation drive and carbon emissions in China," Post-Print hal-04274714, HAL.
    • Handle: RePEc:hal:journl:hal-04274714
    DOI: 10.1016/j.techfore.2023.122631
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    References listed on IDEAS

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    2. Liu, Yajie & Dong, Feng & Li, Guoqing & Pan, Yuling & Qin, Chang & Yang, Shanshan & Li, Jingyun, 2023. "Exploring the factors influencing public support willingness for banning gasoline vehicle sales policy: A grounded theory approach," Energy, Elsevier, vol. 283(C).
    3. Huwei Wen & Yutong Liu, 2023. "Can Fintech Lead to the Collaborative Reduction in Pollution Discharges and Carbon Emissions?," Sustainability, MDPI, vol. 15(15), pages 1-19, July.

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