Low-carbon city pilot policy and enterprise low-carbon innovation–A quasi-natural experiment from China
- Publisher:
- ELSEVIER
- Publication Type:
- Journal Article
- Citation:
- Economic Analysis and Policy, 2024, 83, pp. 204-222
- Issue Date:
- 2024-09-01
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This study investigates whether the implementation of this policy fosters low-carbon innovation amongst enterprises and identifies the mechanisms underpinning its effects. Utilising low-carbon patent authorisation data from A-share listed companies in the Shanghai and Shenzhen stock markets between 2008 and 2019, this study employs a difference-in-differences model to conduct a multi-dimensional empirical examination of these questions. The findings indicate that the low-carbon city pilot policy can stimulate low-carbon innovation at the enterprise level to a certain extent, and this conclusion remains robust after a series of rigorous tests. The impact of low-carbon innovation is more pronounced in the authorisation of invention patents, with the pilot policy exerting a more significant influence on state-owned enterprises and enterprises with strong political affiliations. Further analysis reveals that government subsidies constitute the primary mechanism through which the pilot policy takes effect, effectively promoting low-carbon innovation in enterprises. This paper offers theoretical and empirical support for evaluating the low-carbon city pilot policy at the enterprise level and advances policy implications in three areas: further policy development, enterprise characteristics, and the application of various policy instruments.
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