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Environmental regulation, R&D subsidies, and industrial green total factor productivity

Year: 2024

Type: article

Abstract: In the face of worsening global environmental degradation, significant attention has been devoted to the greening of industrial transformation and development, specifically by improving industrial green total factor productivity (GTFP). We explored the impact of environmental regulations on industrial GTFP and the moderating influence of R&D subsidies. We established a theoretical model in which environmental regulations affect industrial GTFP, and this relationship is moderated by R&D subsidies. The results revealed that the impact of environmental regulations on industrial GTFP is U-shaped and that the current level of environmental regulation is insufficient to boost industrial GTFP. Green technological innovation plays a mediating role in the effect of environmental regulations on industrial GTFP. Furthermore, R&D subsidies nonlinearly moderate the relationship, resulting in a steeper U-shaped curve and accelerating the arrival of the tipping point. These findings provide theoretical support and a reference for government policies that promote industrial greening.

Source: Sustainable Futures

DOI: 10.1016/j.sftr.2024.100333

Authors: Bu Wei, Li Chenxi, Liu Shanshan

Institution: Beijing Jiaotong University

Language: English

Topic: Energy, Environment, Economic Growth

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Industry, innovation and infrastructure, Responsible consumption and production

Open Access status: gold

Estimated APC paid: $1,880