Are Clean Technologies More Effective Than End-of-Pipe Technologies? Evidence from Chinese Manufacturing

Jiawei Li, Jianghong Zeng, Zhengke Ye and Xiangrong Huang
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Jiawei Li: Department of Management Science and Engineering, Business School, Central South University, Changsha 410083, China
Jianghong Zeng: Department of Management Science and Engineering, Business School, Central South University, Changsha 410083, China
Zhengke Ye: Department of Management Science and Engineering, Business School, Central South University, Changsha 410083, China
Xiangrong Huang: Department of Marketing, School of Business Administration, Hunan University of Finance and Economics, Changsha 410083, China

IJERPH, 2021, vol. 18, issue 8, 1-17

Abstract: An increasing number of manufacturing enterprises are adopting environmental technologies to cope with the increasingly severe environmental regulatory pressure, but the existing studies about the impact of environmental technologies on economic performance come up with mixed results. This paper contributes to the literature by using the financial constraints and market advantages as a dual mediating process in this relationship. An empirical test using a sample of Chinese manufacturing enterprises listed in the Shanghai and Shenzhen exchange from 2011 to 2018 is established. The results of regression analyses show that end-of-pipe technologies and clean technologies have a positive effect on firms’ economic performance. Moreover, we find that clean technologies not only directly affect economic performance but also indirectly affect economic performance through mitigating financial constraints. With the negative influence of end-of-pipe technologies on market advantages, the positive economic effect caused by end-of-pipe technologies is weakened. This research provides useful insights into the selection of environmental technologies for manufacturing firms and the establishment of new policies to promote green finance and green consumption.

Keywords: environmental technologies; financial constraints; market advantages; economic performance (search for similar items in EconPapers)
JEL-codes: I I1 I3 Q Q5 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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