How does information consumption pilot policy affect climate-friendly technological innovation? Evidence from China

Yan Peng () and Jiao Geng ()
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Yan Peng: Sichuan University Jinjiang College
Jiao Geng: Sichuan University Jinjiang College

Economics of Governance, 2025, vol. 26, issue 4, No 5, 623 pages

Abstract: Abstract To promote transformation and upgrade of consumption based on digital technology, China has released the information consumption pilot policy that can promote climate-friendly behavior. Does this policy promote climate-friendly technological innovation? This study employs a theoretical analysis based on “demand-pull innovation” and “technology-push innovation.” Using a difference-in-differences approach and analyzing city-level data from 2008 to 2023, this study examines the effect of the policy on climate-friendly innovation. The results show that, first, the policy enhances environmental awareness of consumers and expands the scale of consumption from the demand side, promoting digital technology development from the supply side, and thus facilitating climate-friendly innovation. Second, the mechanism study shows that the policy improves city risk-taking and government technology expenditure, both of which are conducive to climate-friendly innovation. Third, the role of the policy in promoting climate-friendly innovation is greater in cities with large populations and high public climate concerns.

Keywords: Information consumption pilot policy; Climate-friendly technological innovation; City risk-taking; Government technology expenditures (search for similar items in EconPapers)
JEL-codes: C13 O32 O38 (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s10101-025-00340-4

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