The effect of low-carbon pilot policy on low-carbon technological innovation in China: Reexamining the porter hypothesis using difference-in-difference-in-differences strategy
The Porter hypothesis predicts that the win-win goals of environmental improvement and economic performance can be achieved though technological innovation, but it remains to be tested in elaborated ways. Explicitly identifying the role of environmental regulation and finely clarifying the scope of...
| Main Authors: | , , , , |
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| Format: | Article |
| Language: | English |
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Elsevier
2023-07-01
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| Series: | Journal of Innovation & Knowledge |
| Subjects: | |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S2444569X23000884 |
| _version_ | 1797807055761833984 |
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| author | Hongwei Yu Fei Peng Taiping Yuan Dandan Li Daqian Shi |
| author_facet | Hongwei Yu Fei Peng Taiping Yuan Dandan Li Daqian Shi |
| author_sort | Hongwei Yu |
| collection | DOAJ |
| description | The Porter hypothesis predicts that the win-win goals of environmental improvement and economic performance can be achieved though technological innovation, but it remains to be tested in elaborated ways. Explicitly identifying the role of environmental regulation and finely clarifying the scope of technological innovation have become two important prerequisites for accurately testing the “Porter hypothesis”. Taking China's Low-carbon Pilot Policy as a quasi-natural experiment, this paper constructs a difference-in-difference-in-differences (DDD) strategy to identify the environmental regulation, and selects the low-carbon technological innovation which may be more dependent on Low-carbon Pilot Policy as the explanatory variable, to reexamine the “Porter hypothesis” in China. Based on the data of listed companies in China from 2007 to 2016, this paper conducts substantial empirical studies on effect estimation, robustness test and heterogeneity analysis. The results show that the Low-carbon Pilot Policy significantly promotes the low-carbon technological innovation of enterprises in high-carbon emission industries in pilot cities. The robustness test also verifies the reliability of those results which confirms the validity of “Porter hypothesis”. However, the heterogeneity analysis finds that the testing results of “Porter hypothesis” may vary depending on firms’ characteristics. The Low-carbon Pilot Policy has a positive and significant effect on the enterprises in eastern regions or in the cities with higher R&D investment, it can also promote non-state-owned enterprises’ innovation significantly. This paper may contribute to understand more about “Porter hypothesis” in China and offer strategies for more accurately testing on “Potter hypothesis”. |
| first_indexed | 2024-03-13T06:16:47Z |
| format | Article |
| id | doaj.art-8ecf5844c7fc404ea26334b416a1ef03 |
| institution | Directory Open Access Journal |
| issn | 2444-569X |
| language | English |
| last_indexed | 2024-03-13T06:16:47Z |
| publishDate | 2023-07-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Journal of Innovation & Knowledge |
| spelling | doaj.art-8ecf5844c7fc404ea26334b416a1ef032023-06-11T04:14:50ZengElsevierJournal of Innovation & Knowledge2444-569X2023-07-0183100392The effect of low-carbon pilot policy on low-carbon technological innovation in China: Reexamining the porter hypothesis using difference-in-difference-in-differences strategyHongwei Yu0Fei Peng1Taiping Yuan2Dandan Li3Daqian Shi4Institute of Quality Development Strategy, Wuhan University, Wuhan 430072, ChinaEnergy Development Research Institute, China Southern Power Grid, Guangzhou 510700, ChinaEnergy Development Research Institute, China Southern Power Grid, Guangzhou 510700, ChinaCollaborative Innovation Center for Emissions Trading system Co-constructed by the Province and Ministry, Hubei University of Economics, Wuhan 430205, China; School of Low Carbon Economics, Hubei University of Economics, Wuhan 430205, China; Corresponding author at: Collaborative Innovation Center for Emissions Trading system Co-constructed by the Province and Ministry, Hubei University of Economics, Wuhan 430205, China.Collaborative Innovation Center for Emissions Trading system Co-constructed by the Province and Ministry, Hubei University of Economics, Wuhan 430205, China; School of Economics, Wuhan University of Technology, Wuhan 430070, China; Corresponding author at: Collaborative Innovation Center for Emissions Trading system Co-constructed by the Province and Ministry, Hubei University of Economics, Wuhan 430205, China; School of Economics, Wuhan University of Technology, Wuhan 430070, China.The Porter hypothesis predicts that the win-win goals of environmental improvement and economic performance can be achieved though technological innovation, but it remains to be tested in elaborated ways. Explicitly identifying the role of environmental regulation and finely clarifying the scope of technological innovation have become two important prerequisites for accurately testing the “Porter hypothesis”. Taking China's Low-carbon Pilot Policy as a quasi-natural experiment, this paper constructs a difference-in-difference-in-differences (DDD) strategy to identify the environmental regulation, and selects the low-carbon technological innovation which may be more dependent on Low-carbon Pilot Policy as the explanatory variable, to reexamine the “Porter hypothesis” in China. Based on the data of listed companies in China from 2007 to 2016, this paper conducts substantial empirical studies on effect estimation, robustness test and heterogeneity analysis. The results show that the Low-carbon Pilot Policy significantly promotes the low-carbon technological innovation of enterprises in high-carbon emission industries in pilot cities. The robustness test also verifies the reliability of those results which confirms the validity of “Porter hypothesis”. However, the heterogeneity analysis finds that the testing results of “Porter hypothesis” may vary depending on firms’ characteristics. The Low-carbon Pilot Policy has a positive and significant effect on the enterprises in eastern regions or in the cities with higher R&D investment, it can also promote non-state-owned enterprises’ innovation significantly. This paper may contribute to understand more about “Porter hypothesis” in China and offer strategies for more accurately testing on “Potter hypothesis”.http://www.sciencedirect.com/science/article/pii/S2444569X23000884O33 Q48 |
| spellingShingle | Hongwei Yu Fei Peng Taiping Yuan Dandan Li Daqian Shi The effect of low-carbon pilot policy on low-carbon technological innovation in China: Reexamining the porter hypothesis using difference-in-difference-in-differences strategy Journal of Innovation & Knowledge O33 Q48 |
| title | The effect of low-carbon pilot policy on low-carbon technological innovation in China: Reexamining the porter hypothesis using difference-in-difference-in-differences strategy |
| title_full | The effect of low-carbon pilot policy on low-carbon technological innovation in China: Reexamining the porter hypothesis using difference-in-difference-in-differences strategy |
| title_fullStr | The effect of low-carbon pilot policy on low-carbon technological innovation in China: Reexamining the porter hypothesis using difference-in-difference-in-differences strategy |
| title_full_unstemmed | The effect of low-carbon pilot policy on low-carbon technological innovation in China: Reexamining the porter hypothesis using difference-in-difference-in-differences strategy |
| title_short | The effect of low-carbon pilot policy on low-carbon technological innovation in China: Reexamining the porter hypothesis using difference-in-difference-in-differences strategy |
| title_sort | effect of low carbon pilot policy on low carbon technological innovation in china reexamining the porter hypothesis using difference in difference in differences strategy |
| topic | O33 Q48 |
| url | http://www.sciencedirect.com/science/article/pii/S2444569X23000884 |
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