The Effect and Mechanism of New Energy Demonstration City Policy on Corporate Green Technology Innovation in China

Chenxi Wang ()
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Chenxi Wang: University of International Business and Economics, School of International Trade and Economics

A chapter in Proceedings of the 2025 5th International Conference on Enterprise Management and Economic Development (ICEMED 2025), 2025, pp 124-138 from Springer

Abstract: Abstract With the growing environmental challenges worldwide, nations are implementing policies to help adopt new energy technologies and develop green technologies. China’s New Energy Demonstration City Policy (NEDCP) has demonstrated notable effectiveness in achieving its dual objectives of energy structure optimization and fostering green development. This study uses a dual differential model (DID) to analyze a comprehensive sample of China’s A-share listed companies (2008–2023) in order to examine the effects of NEDCP on corporate green technological innovation (GTI) and its fundamental mechanisms. The results show that NEDCP significantly enhances corporate GTI, with this effect remaining robust across multiple robustness tests, including parallel trend analyses and placebo tests. Mechanism analysis reveals that NEDCP promotes corporate GTI by increasing green subsidies from municipal governments in pilot cities. According to heterogeneity testing, the policy has a greater impact on GTI in small businesses, the manufacturing sector, and the central area of China. These results suggest that strategic expansion of NEDCP pilot cities could accelerate the nationwide promotion of new energy, thereby fostering corporate GTI and supporting the achievement of China’s “dual carbon” targets.

Keywords: New Energy Demonstration City Policy (NEDCP); corporate green technological innovation (GTI); DID model (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-811-0_13

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DOI: 10.2991/978-94-6463-811-0_13

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