Top

Economic Change and Restructuring

Published in:

01-04-2024

Impact of smart city pilot policy on heterogeneous green innovation: micro-evidence from Chinese listed enterprises

Authors: Yong Qi, Yanan Tang, Tingting Bai

Published in: Economic Change and Restructuring | Issue 2/2024

Activate our intelligent search to find suitable subject content or patents.

search-config

AI-assisted search

Off

Abstract

As a new form of urbanization, smart city construction in China represents an innovative approach to promoting economic growth and environmental protection. This paper takes the smart city pilot policy (SCPP) as a quasi-natural experiment. Based on the panel data of Chinese listed enterprises during 2007–2021, the impacts of SCPP on heterogeneous enterprise green innovation (EGI) are explored using the difference-in-differences method. The results indicate that SCPP can effectively promote EGI. Particularly, SCPP contributes more significantly to energy conservation innovation at source and technology-based green innovation than end-of-pipe governance innovation and administration-based green innovation. Mechanism tests reveal that SCPP can promote EGI by increasing enterprise digitalization. SCPP is also subject to government environmental monitoring and public environmental supervision, thus encouraging EGI. Heterogeneity analysis suggests that SCPP exhibits more prominent promotion effects on EGI in eastern and central regions, non-resource-based regions, and large enterprises. Furthermore, SCPP promotes EGI while leading to long-term improvements in enterprise economic performance. This study can provide not only micro-evidence from Chinese listed enterprises for understanding the heterogeneous green innovation impact of smart city construction. The findings can also provide valuable references for other developing countries experiencing rapid urbanization and industrialization in their pursuit of green development.

previous article Does banking sector support for achieving the sustainable development goals affect bank loan loss provisions? International evidence

next article Circular economy and biomass utilization: economic prospect for sustainable energy transition in China

Dont have a licence yet? Then find out more about our products and how to get one now:

Springer Professional "Wirtschaft+Technik"

Online-Abonnement

Mit Springer Professional "Wirtschaft+Technik" erhalten Sie Zugriff auf:

über 102.000 Bücher
über 537 Zeitschriften

aus folgenden Fachgebieten:

Automobil + Motoren
Bauwesen + Immobilien
Business IT + Informatik
Elektrotechnik + Elektronik
Energie + Nachhaltigkeit
Finance + Banking
Management + Führung
Marketing + Vertrieb
Maschinenbau + Werkstoffe
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

inform now

Springer Professional "Wirtschaft"

Online-Abonnement

Mit Springer Professional "Wirtschaft" erhalten Sie Zugriff auf:

über 67.000 Bücher
über 340 Zeitschriften

aus folgenden Fachgebieten:

Bauwesen + Immobilien
Business IT + Informatik
Finance + Banking
Management + Führung
Marketing + Vertrieb
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

inform now

Available only for authorised users

See THE 17 GOALS | Sustainable Development (un.org).

See http://www.gov.cn/zwgk/2013-12/03/content_2540070.htm

Acemoglu D, Aghion P, Bursztyn L et al (2012) The environment and directed technical change. Am Econ Rev 102(1):131–166

Ahmad F, Draz MU, Chang WY et al (2021) (2021) More than the resource curse: exploring the nexus of natural resource abundance and environmental quality in northwestern China. Resour Policy 70:101902

Ardito L (2023) The influence of firm digitalization on sustainable innovation performance and the moderating role of corporate sustainability practices: An empirical investigation. Bus Strategy Environ

Bai T, Qi Y, Li Z, Xu D (2023) Digital economy, industrial transformation and upgrading, and spatial transfer of carbon emissions: the paths for low-carbon transformation of Chinese cities. J Environ Manage 344:118528

Bertrand M, Mullainathan S (2003) Enjoying the quiet life? Corporate governance and managerial preferences. J Polit Econ 111(5):1043–1075

Cai X, Lu Y, Wu M, Yu L (2016) Does environmental regulation drive away inbound foreign direct investment? Evidence from a quasi-natural experiment in China. J Dev Econ 123:73–85

Caragliu A, Del Bo CF (2019) Smart innovative cities: the impact of Smart City policies on urban innovation. Technol Forecast Soc Chang 142:373–383

Chen J, Zhou C, Wang S et al (2018a) Impacts of energy consumption structure, energy intensity, economic growth, urbanization on PM2. 5 concentrations in countries globally. Appl Energy 230:94–105

Chen Z, Kahn ME, Liu Y et al (2018b) The consequences of spatially differentiated water pollution regulation in China. J Environ Econ Manag 88:468–485

Choi C (2010) The effect of the Internet on service trade. Econ Lett 109(2):102–104

Chu Z, Cheng M, Yu N (2021) A smart city is a less polluted city. Technol Forecast Soc Chang 172:121037

Chun H, Kim JW, Lee J (2015) How does information technology improve aggregate productivity? A new channel of productivity dispersion and reallocation. Res Policy 44(5):999–1016

Cruz-Cázares C, Bayona-Sáez C, García-Marco T (2013) You can’t manage right what you can’t measure well: Technological innovation efficiency. Res Policy 42(6–7):1239–1250

Dong Z, He Y, Wang H et al (2020) Is there a ripple effect in environmental regulation in China?–Evidence from the local-neighborhood green technology innovation perspective. Ecol Ind 118:106773

Duggal VG, Saltzman C, Klein LR (2007) Infrastructure and productivity: an extension to private infrastructure and it productivity. J Econom 140(2):485–502

El Ouadghiri I, Guesmi K, Peillex J et al (2021) Public attention to environmental issues and stock market returns. Ecol Econ 180:106836

Elsaeidy A, Munasinghe KS, Sharma D et al (2019) Intrusion detection in smart cities using restricted Boltzmann machines. J Netw Comput Appl 135:76–83

Feng S, Zhang R, Li G (2022) Environmental decentralization, digital finance and green technology innovation. Struct Chang Econ Dyn 61:70–83

Filiou D, Kesidou E, Wu L (2023) Are smart cities green? The role of environmental and digital policies for Eco-innovation in China. World Dev 165:106212

Gao J, Zhang W, Guan T (2023) The effect of manufacturing agent heterogeneity on enterprise innovation performance and competitive advantage in the era of digital transformation. J Bus Res 155:113387

Guo Q, Zhong J (2022) The effect of urban innovation performance of smart city construction policies: evaluate by using a multiple period difference-in-differences model. Technol Forecast Soc Chang 184:122003

Hao X, Chen F, Chen Z (2022) Does green innovation increase enterprise value? Bus Strateg Environ 31(3):1232–1247

Hao X, Li Y, Ren S et al (2023) The role of digitalization on green economic growth: Does industrial structure optimization and green innovation matter? J Environ Manag 325:116504

Hojnik J, Ruzzier M (2016) The driving forces of process eco-innovation and its impact on performance: insights from Slovenia. J Clean Prod 133:812–825

Hospers GJ (2005) Joseph Schumpeter and his legacy in innovation studies. Knowl Technol Policy 18(3):20–37

Huang Y, Luk P (2020) Measuring economic policy uncertainty in China. China Econ Rev 59:101367

Jiang H, Jiang P, Wang D et al (2021) Can smart city construction facilitate green total factor productivity? A quasi-natural experiment based on China’s pilot smart city. Sustain Cities Soc 69:102809

Kirikkaleli D, Kalmaz DB (2020) Testing the moderating role of urbanization on the environmental Kuznets curve: empirical evidence from an emerging market. Environ Sci Pollut Res 27(30):38169–38180

Kleer R (2010) Government R&D subsidies as a signal for private investors. Res Policy 39(10):1361–1374

Klemetsen ME, Bye B, Raknerud A (2018) Can direct regulations spur innovations in environmental technologies? A study on firm-level patenting. Scand J Econ 120(2):338–371

Lee KH, Min B (2015) Green R&D for eco-innovation and its impact on carbon emissions and firm performance. J Clean Prod 108:534–542

Li L, Zheng Y, Zheng S et al (2020) The new smart city programme: evaluating the effect of the internet of energy on air quality in China. Sci Total Environ 714:136380

Li L, Ma S, Zheng Y, Ma X, Duan K (2022a) Do regional integration policies matter? Evidence from a quasi-natural experiment on heterogeneous green innovation. Energy Econ 116:106426

Li Z, Bai T, Tang C (2022b) How does the low-carbon city pilot policy affect the synergistic governance efficiency of carbon and smog? Quasi-experimental evidence from China. J Clean Prod 373:133809

Lin B, Zhu J (2018) Changes in urban air quality during urbanization in China. J Clean Prod 188:312–321

Liu C, Ma Q (2020) Research on the influence of network infrastructure construction on total factor productivity growth: a quasi-natural experiment of “Broadband China” pilot polic. Chin J Popul Sci 3:75–88 ((in Chinese))

Liu J, Xiao Y (2022) China’s environmental protection tax and green innovation: Incentive effect or crowding-out effect? Econ Res J 57(01):72–88 ((in Chinese))

Liu S, Du J, Zhang W et al (2021) Innovation quantity or quality? The role of political connections. Emerg Mark Rev 48:100819

Liu Y, Gao C, Lu Y (2017) The impact of urbanization on GHG emissions in China: the role of population density. J Clean Prod 157:299–309

Liu Q, Yang X, Shen Z, Štreimikienė D (2022) Digital economy and substantial green innovation: empirical evidence from Chinese listed companies. Technol Anal Strateg Manag 1:1–15

Luo Y, Lu Z, Wu C (2023) Can internet development accelerate the green innovation efficiency convergence: evidence from China. Technol Forecast Soc Chang 189:122352

Manjon M, Aouni Z, Crutzen N (2021) Green and digital entrepreneurship in smart cities. Ann Region Sci 1:1–34

Miao Z, Chen X, Baležentis T et al (2019) Atmospheric environmental productivity across the provinces of China: Joint decomposition of range adjusted measure and Luenberger productivity indicator. Energy Policy 132:665–677

Olson EL (2013) Perspective: The green innovation value chain: A tool for evaluating the diffusion prospects of green products. J Prod Innov Manag 30(4):782–793

Pan X, Cheng W, Gao Y et al (2021) Is environmental regulation effective in promoting the quantity and quality of green innovation? Environ Sci Pollut Res 28(5):6232–6241

Pan X, Guo S, Han C et al (2020) Influence of FDI quality on energy efficiency in China based on seemingly unrelated regression method. Energy 192:116463

Peng W, Yin Y, Kuang C et al (2021) Spatial spillover effect of green innovation on economic development quality in China: Evidence from a panel data of 270 prefecture-level and above cities. Sustain Cities Soc 69:102863

Porter ME, Van der Linde C (1995) Toward a new conception of the environment-competitiveness relationship. J Econ Perspect 9(4):97–118

Qi S, Lin S, Cui J (2018) Do environmental rights trading schemes induce green innovation? Evidence from listed firms in China. Econ Res J 53(12):129–143 ((in Chinese))

Qiu L (2023) Does the construction of smart cities promote urban green innovation? Evid China Appl Econ Lett 30(19):2688–2696

Quesnel KJ, Ajami NK (2017) Changes in water consumption linked to heavy news media coverage of extreme climatic events. Sci Adv 3(10):e1700784

Riillo CAF (2017) Beyond the question “Does it pay to be green?”: How much green? and when? J Clean Prod 141:626–640

Shami MR, Rad VB, Moinifar M (2022) The structural model of indicators for evaluating the quality of urban smart living. Technol Forecast Soc Chang 176:121427

Shen C, Li S, Wang X et al (2020) The effect of environmental policy tools on regional green innovation: evidence from China. J Clean Prod 254:120122

Song M, Wang S, Zhang H (2020) Could environmental regulation and R&D tax incentives affect green product innovation? J Clean Prod 258:120849

Tang J, Li S (2022) How do environmental regulation and environmental decentralization affect regional green innovation? Empirical research from China. Int J Environ Res Public Health 19(12):7074

Tang M, Liu Y, Hu F et al (2023) Effect of digital transformation on enterprises’ green innovation: empirical evidence from listed companies in China. Energy Econ 128:107135

Wang G, Li Y, Zuo J et al (2021) Who drives green innovations? Characteristics and policy implications for green building collaborative innovation networks in China. Renew Sustain Energy Rev 143:110875

Wang H, Qi S, Zhou C et al (2022a) Green credit policy, government behavior and green innovation quality of enterprises. J Clean Prod 331:129834

Wang KL, Pang SQ, Zhang FQ et al (2022b) The impact assessment of smart city policy on urban green total-factor productivity: evidence from China. Environ Impact Assess Rev 94:106756

Wang KL, Sun TT, Xu RY (2022c) The impact of artificial intelligence on total factor productivity: empirical evidence from China’s manufacturing enterprises. Econ Change Restruct 1:1–34

Wang L, Long Y, Li C (2022d) Research on the impact mechanism of heterogeneous environmental regulation on enterprise green technology innovation. J Environ Manag 322:116127

Wang Y, Yu L (2021) Can the current environmental tax rate promote green technology innovation?-Evidence from China’s resource-based industries. J Clean Prod 278:123443

Wang Z, Yang Z, Zhang Y et al (2012) Energy technology patents–CO2 emissions nexus: an empirical analysis from China. Energy Policy 42:248–260

Wu D, Xie Y, Lyu S (2023) Disentangling the complex impacts of urban digital transformation and environmental pollution: Evidence from smart city pilots in China. Sustain Cities Soc 88:104266

Xie X, Zhu Q, Wang R (2019) Turning green subsidies into sustainability: how green process innovation improves firms’ green image. Bus Strateg Environ 28(7):1416–1433

Xu L, Fan M, Yang L et al (2021) Heterogeneous green innovations and carbon emission performance: evidence at China’s city level. Energy Economics 99:105269

Yan Z, Sun Z, Shi R, Zhao M (2023) Smart city and green development: empirical evidence from the perspective of green technological innovation. Technol Forecast Soc Chang 191:122507

Yao T, Huang Z, Zhao W (2020) Are smart cities more ecologically efficient? Evidence from China. Sustain Cities Soc 60:102008

Yin J, Li C (2022) Data governance and green technological innovation performance: a curvilinear relationship. J Clean Prod 379:134441

Yuan C, Xiao T, Geng C, Sheng Y (2021) Digital transformation and division of labor between enterprises: vertical specialization or vertical integration. China Industrial Economics 09:137–155 ((in Chinese))

Yue X, Zhao S, Ding X et al (2022) How the pilot low-carbon city policy promotes urban green innovation: based on temporal-spatial dual perspectives. Int J Environ Res Public Health 20(1):561

Zhang D, Rong Z, Ji Q (2019) Green innovation and firm performance: evidence from listed companies in China. Resour Conserv Recycl 144:48–55

Zhang Q, Ma Y (2021) The impact of environmental management on firm economic performance: The mediating effect of green innovation and the moderating effect of environmental leadership. J Clean Prod 292:126057

Zhang Y, Wang Y (2022) Do managerial ties help or hinder corporate green innovation? The moderating roles of contextual factors. Int J Environ Res Public Health 19(7):4019

Zhang Z, Zhou Z, Zeng Z, Zou Y (2023) How does heterogeneous green technology innovation affect air quality and economic development in Chinese cities? Spatial and nonlinear perspective analysis. J Innov Knowl 8(4):100419

Zhao L, Zhang L, Sun J et al (2022) Can public participation constraints promote green technological innovation of Chinese enterprises? The moderating role of government environmental regulatory enforcement. Technol Forecast Soc Chang 174:121198

Zhao X, Guo Y, Liu Z et al (2023) Boosting green recovery: the impact of green fiscal policy on green total factor productivity. Econ Change Restructu 1:1–19

Zhou B, Ding H (2023) How public attention drives corporate environmental protection: effects and channels. Technol Forecast Soc Chang 191:122486

Zhu J, Fan Y, Deng X et al (2019) Low-carbon innovation induced by emissions trading in China. Nat Commun 10(1):4088

Zhu Q, Sarkis J, Lai K (2012) Examining the effects of green supply chain management practices and their mediations on performance improvements. Int J Prod Res 50(5):1377–1394

Zhu Z, Tan Y (2022) Can green industrial policy promote green innovation in heavily polluting enterprises? Evidence from China. Econ Anal Policy 74:59–75

Title: Impact of smart city pilot policy on heterogeneous green innovation: micro-evidence from Chinese listed enterprises
Authors: Yong Qi
Yanan Tang
Tingting Bai
Publication date: 01-04-2024
Publisher: Springer US
Published in: Economic Change and Restructuring / Issue 2/2024
Print ISSN: 1573-9414
Electronic ISSN: 1574-0277
DOI: https://doi.org/10.1007/s10644-024-09654-5

Springer Professional

Abstract

Please log in to get access to your license.

Dont have a licence yet? Then find out more about our products and how to get one now:

Springer Professional "Wirtschaft+Technik"

Springer Professional "Wirtschaft"

Other articles of this Issue 2/2024

Does financial openness matter for economic transformation in sub-Saharan Africa?

Fostering sustainability: integrating social responsibility, green finance, and corporate performance

Does onslaught of globalisation induce pro-efficient government expenditures in a large transitioning economy? Empirical evidence from India

Exploring the Fiscal policy—income inequality relationship with Bayesian model averaging analysis

Unraveling the interplay of financial inclusion, stability, and shadow banking in emerging markets

China’s high-quality economic development: a study of regional variations and spatial evolution

Premium Partner