Does Extended Producer Responsibility System Promote Green Technological Innovation in China’s Power Battery Enterprises?

Cailou Jiang () and Yue Zhang
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Cailou Jiang: School of Business, Nanjing University of Information Science & Technology, Nanjing 210044, China
Yue Zhang: School of Business, Nanjing University of Information Science & Technology, Nanjing 210044, China

Sustainability, 2023, vol. 15, issue 16, 1-17

Abstract: In an effort to accelerate the advancement of green and low-carbon development, China introduced the extended producer responsibility (EPR) system in 2016, mandating producers to assume responsibility for waste recycling. Notably, power battery enterprises emerged as a primary focal point within the EPR system. Consequently, the interplay between this system and the green technological innovation of enterprises has a substantial impact on the sustainable development of power battery companies. To comprehensively explore this relationship, we conducted an empirical investigation utilizing a sample comprising listed power battery enterprises in China from 2010 to 2020. Employing the difference-in-difference (DID) model, this study aims to analyze the implications of the EPR system on green technological innovation within these enterprises. The results indicate that: (1) The EPR system significantly promotes green technological innovation in power battery enterprises, leading to an increase in the quantity of green invention patents and improvement in the quality of green patents. (2) The mechanism test reveals that the EPR system can stimulate green innovation in power battery enterprises by increasing government subsidies and raising executives’ environmental awareness. The future endeavors aimed at promoting green innovation in power battery enterprises should be concentrated on four key aspects: (1) Expanding and optimizing the implementation of the EPR system to encompass a broader spectrum of enterprises. (2) Developing precise subsidy mechanisms in conjunction with the EPR system to effectively offset recycling costs and provide incentives for fostering green innovation within power battery enterprises. (3) Encouraging proactive engagement of power battery enterprises in strategic self-reform to align with the EPR system requirements and formulate comprehensive green technology innovation strategies. (4) Enhancing the awareness of innovation among executives to accelerate the development and advancement of green products. By focusing on these four crucial dimensions, the promotion of green innovation in power battery enterprises can be strategically and efficiently pursued, thus contributing to the sustainable development of the sector.

Keywords: extended producer responsibility system; green technological innovation; power battery enterprise; government subsidies; executives’ environmental awareness (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
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