Does Tax Incentives Matter to Enterprises’ Green Technology Innovation? The Mediating Role on R&D Investment

Haijun Wang, Jinlan Yang () and Naiping Zhu ()
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Haijun Wang: School of Management, Jiangsu University, Zhenjiang 212013, China
Jinlan Yang: School of Finance & Economics, Jiangsu University, Zhenjiang 212013, China
Naiping Zhu: School of Finance & Economics, Jiangsu University, Zhenjiang 212013, China

Sustainability, 2024, vol. 16, issue 14, 1-20

Abstract: This study focused on China’s A-share listed companies from 2017 to 2022, and concluded that tax incentives have a positive impact on the performance of green technology innovation, and that value-added tax preferences are more effective than income tax preferences. Tax incentives guide enterprises to increase R&D investment, and R&D investment constitutes the mechanism of tax incentives to promote the performance green technology innovation. Non-state-owned enterprises benefit more from the timely help of tax incentives. Higher levels of the business environment in certain regions lead to more significant promoting effects of tax incentives. Enterprises in non-heavily polluting industries are more easily incentivized by preferential tax policies to undertake more green innovations. The study’s findings aimed to improve current preferential tax policies and help enterprises achieve green and innovative development.

Keywords: tax incentives; R&D investment; green technology innovation; corporate rent-seeking (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (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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