Local governments competing for the environment and green innovation-evidence from China

Enhancing green innovation is the key to realizing high-quality development and the “dual-carbon” goal. This paper takes the data from Chinese cities from 2000 to 2018 as a sample to test the impact and mechanism of local governments’ competition for the environment on urban green innovation. The st...

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Main Author: Kai Wan
Format: Article
Language:English
Published: Taylor & Francis Group 2024-12-01
Series:Journal of Applied Economics
Subjects:
Online Access:https://www.tandfonline.com/doi/10.1080/15140326.2024.2358723
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author Kai Wan
author_facet Kai Wan
author_sort Kai Wan
collection DOAJ
description Enhancing green innovation is the key to realizing high-quality development and the “dual-carbon” goal. This paper takes the data from Chinese cities from 2000 to 2018 as a sample to test the impact and mechanism of local governments’ competition for the environment on urban green innovation. The study found that local government competition for the environment can effectively promote urban green innovation, and the spatial spillover effect is significant and can lead neighboring cities to improve the level of green innovation jointly. The results of the mechanism test indicate that local government competition promotes green innovation through two channels: influencing fiscal expenditure bias and the establishment of development zones. Further analysis shows that the impact of government competition on green innovation has apparent spatial heterogeneity, while the double-threshold effect results in an “N”-shaped relationship between local government competition and urban green innovation.
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series Journal of Applied Economics
spelling doaj-art-4145ea7412be410b9a4092e89b8a633d2025-08-20T03:26:44ZengTaylor & Francis GroupJournal of Applied Economics1514-03261667-67262024-12-0127110.1080/15140326.2024.2358723Local governments competing for the environment and green innovation-evidence from ChinaKai Wan0School of Economics, Hangzhou Dianzi University, HangZhou, ChinaEnhancing green innovation is the key to realizing high-quality development and the “dual-carbon” goal. This paper takes the data from Chinese cities from 2000 to 2018 as a sample to test the impact and mechanism of local governments’ competition for the environment on urban green innovation. The study found that local government competition for the environment can effectively promote urban green innovation, and the spatial spillover effect is significant and can lead neighboring cities to improve the level of green innovation jointly. The results of the mechanism test indicate that local government competition promotes green innovation through two channels: influencing fiscal expenditure bias and the establishment of development zones. Further analysis shows that the impact of government competition on green innovation has apparent spatial heterogeneity, while the double-threshold effect results in an “N”-shaped relationship between local government competition and urban green innovation.https://www.tandfonline.com/doi/10.1080/15140326.2024.2358723Environmental decentralizationfiscal spending biasdevelopment zone creationtheoretical models
spellingShingle Kai Wan
Local governments competing for the environment and green innovation-evidence from China
Journal of Applied Economics
Environmental decentralization
fiscal spending bias
development zone creation
theoretical models
title Local governments competing for the environment and green innovation-evidence from China
title_full Local governments competing for the environment and green innovation-evidence from China
title_fullStr Local governments competing for the environment and green innovation-evidence from China
title_full_unstemmed Local governments competing for the environment and green innovation-evidence from China
title_short Local governments competing for the environment and green innovation-evidence from China
title_sort local governments competing for the environment and green innovation evidence from china
topic Environmental decentralization
fiscal spending bias
development zone creation
theoretical models
url https://www.tandfonline.com/doi/10.1080/15140326.2024.2358723
work_keys_str_mv AT kaiwan localgovernmentscompetingfortheenvironmentandgreeninnovationevidencefromchina