Carbon peaking pressure and corporate R&D investment

Dan Sun and Yiping Li

Economics Letters, 2025, vol. 251, issue C

Abstract: The goal of “double carbon” presents both challenges and opportunities for China's manufacturing sector. This study examines the impact of regional carbon peaking pressure (CPP) on corporate R&D investment, using panel data from Chinese A-share listed manufacturing firms between 2015 and 2020. By employing a two-stage least squares approach, we find that higher CPP significantly boosts R&D investment, particularly in R&D-intensive firms, state-owned enterprises, and firms with lower tax payments. In contrast, firms with lower R&D investment ratios, private firms, and major tax contributors exhibit a weaker response to CPP. In addition, while CPP increases R&D investment, it also introduces trade-offs, such as reduced management expenses and temporary declines in productivity.

Keywords: Carbon peaking pressure; Research and development; Total factor productivity; Management expenses; Manufacturing enterprises (search for similar items in EconPapers)
JEL-codes: O32 Q58 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:251:y:2025:i:c:s016517652500165x

DOI: 10.1016/j.econlet.2025.112328

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