How does environmentally induced R&D affect carbon productivity? A government support perspective
Shikuan Zhao,
Yuequn Cao,
Ahmed Hunjra () and
Yan Tan
International Review of Economics & Finance, 2023, vol. 88, issue C, 942-961
Abstract:
Environmentally induced R&D (ER&D) has been positioned as an essential factor in emission reduction and total factor carbon productivity (TFCP) improvement; however, how government support moderates ER&D's impact on TFCP is unclear. Using 30 Chinese provinces' panel data for 1998–2020, this paper applies the systemic generalized method of moments (SYS-GMM), dynamic threshold, and spatial Durbin models to explore ER&D's impact on TFCP under various types of government support. The results show a “U-shaped” ER&D-TFCP relationship. All types of government support can positively moderate ER&D's impact on regional TFCP. With government support as the threshold variable, ER&D's impact on green total factor productivity gradually increases. Moreover, ER&D and government support show a spatial spillover effect on TFCP. This paper offers policy implications about ER&D investment and TFCP improvement for China and other developing countries.
Keywords: Environmentally induced R&D; Total factor carbon productivity; Government support; Spatial effect; Dynamic effect (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (13)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:reveco:v:88:y:2023:i:c:p:942-961
DOI: 10.1016/j.iref.2023.07.022
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