Title: Impact of green subsidies on green innovation of environmental service firms in China

Authors: Xiaofeng Xu; Xiangyu Chen; Yiqi Li; Guangrui Jiang

Addresses: International School of Law and Finance, East China University of Political Science and Law, Shanghai, 200042, China; Legal Research Center of Optimizing Doing Business Environment, East China University of Political Science and Law, Shanghai, 200042, China ' International School of Law and Finance, East China University of Political Science and Law, Shanghai, 200042, China ' International School of Law and Finance, East China University of Political Science and Law, Shanghai, 200042, China ' Center of Green Finance and Energy Development, East China University of Political Science and Law, Shanghai, 200042, China; School of Intellectual Property, East China University of Political Science and Law, Shanghai, 200042, China

Abstract: This research investigates the influence of green subsidies on the green innovation of environmental service firms using multiple linear regression. It covers the years 2014 through 2020 for environmental service firms listed on the Shanghai and Shenzhen Stock Exchanges. The results demonstrate that: 1) green subsidies can encourage the green innovation of environmental service firms, and research and development (R&D) investment mediates this effect; 2) the intensity of environmental regulation moderates the relationship between R&D investment and green innovation in a negative manner; 3) in less developed regions, green subsidies are more effective for promoting green innovation. These findings may assist the government in establishing green subsidy programs and developing sensible environmental policies to promote the green development of environmental service firms.

Keywords: green subsidies; green innovation; environmental regulation; environmental service; China.

DOI: 10.1504/IJTM.2024.137024

International Journal of Technology Management, 2024 Vol.95 No.1/2, pp.35 - 54

Received: 15 Mar 2022
Received in revised form: 03 Jul 2022
Accepted: 09 Dec 2022
Published online: 01 Mar 2024 *