The Green Paradox in NEV Manufacturing: Regulatory Impacts on Innovation from a Stakeholder Perspective

Qing Chen and Chengjiang Li ()
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Qing Chen: Business School, Dongguan City University, Dongguan 523419, China
Chengjiang Li: School of Management, Guizhou University, Guiyang 550025, China

Energies, 2024, vol. 17, issue 14, 1-24

Abstract: This paper explores the paradoxical impact of environmental regulations on green innovation in the manufacturing of new energy vehicles (NEVs) from a stakeholder perspective. We address the dual challenge of accelerating green innovation across various diffusion stages and refining environmental regulations for effective stakeholder engagement, including the central government, upstream suppliers, and internal operations teams. First, we utilize Stackelberg game theory to analyze the strategic interaction and behavioral rationale between local governments and NEV manufacturers at different stages of innovation diffusion, represented by specific parameter sets. Second, we examine the roles of four key stakeholders, exploring their unique impact mechanisms and potential to influence the game’s Nash equilibrium. Finally, the game models’ validity and primary conclusions are corroborated with real-world case studies, prominently including the ongoing shift of Chinese automakers towards NEVs. Results demonstrate that: (1) environmental regulations should be calibrated according to the diffusion stages of green innovation, and (2) misaligned stakeholder interests can lead to environmental regulations that inadvertently hinder, rather than promote, NEV manufacturers’ green innovation efforts.

Keywords: environmental regulation; green innovation; stakeholders; innovation diffusion; new energy vehicles (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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