Exploring the Demand-Pull Effect on Green Innovation and Its Spatial Spillover Effects: Evidence from 261 Chinese Prefecture-Level Cities

Peng Hou and Jifei Guo ()
Additional contact information
Peng Hou: School of Economics and Management, Beijing Forestry University, Beijing 100083, China
Jifei Guo: School of Economics and Management, Beijing Forestry University, Beijing 100083, China

Sustainability, 2023, vol. 15, issue 21, 1-22

Abstract: In China’s evolving landscape of high-quality development, characterized by a shift toward greener and lower-carbon practices, green innovation plays an essential role. Among the determinants shaping green innovation, demand factors play a pivotal role in driving its progress. Drawing on the theory of demand-induced innovation, this study utilized panel data spanning from 2008 to 2020 from 261 Chinese prefecture-level cities to investigate the effects of demand factors on green innovation. It also made use of a spatial model to investigate the regulatory function that market segmentation plays in this complex interplay, as well as any possible spatial spillover effects of these demand factors on the dynamics of green innovation. The research findings reveal that both domestic and foreign demand exert a significant fostering effect on the development of green innovation, whereas the widening income gap plays a constraining role. And the influence of demand considerations on green innovation varies depending on the region and kind of patent. Furthermore, the influence of demand factors on green innovation is accompanied by spatial spillover effects and is subject to modulation by the extent of market segmentation. The insights obtained from this research offer practical implications for advancing green innovation and provide guidance for its better promotion.

Keywords: green innovation; demand pull; spatial spillover; market segmentation (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.mdpi.com/2071-1050/15/21/15631/pdf (application/pdf)
https://www.mdpi.com/2071-1050/15/21/15631/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:15:y:2023:i:21:p:15631-:d:1274339

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().