The choice of the government green subsidy scheme: innovation subsidy vs. product subsidy

Li, Yina; Tong, Yang; Ye, Fei; Song, Jiajia

doi:10.1080/00207543.2020.1730466

Cited by 128 publications

(66 citation statements)

References 34 publications

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“…In this study, we choose China as our focus because although China's industrial enterprises have promoted the rapid economic development; they seriously pollute the natural environment (Li et al, 2020). Specifically, we initially identified 2767 industrial listed firms based on the industry classification of listed firms, because these industrial firms should be responsible for environment pollution.…”

Section: Methodsmentioning

confidence: 99%

“…In this study, we choose China as our focus because although China's industrial enterprises have promoted the rapid economic development; they seriously pollute the natural environment (Li et al, 2020). On the one hand, we obtained data on enterprises' green process and product innovation from corporate social responsibility reports.…”

Section: Data Sourcementioning

confidence: 99%

“…To address market failures of green innovation, scholars in strategy fields regard government green subsidies (GS) as an effective tool (Bai et al, 2019; Li, Tong, Ye, & Song, 2020). Governments provide green subsidies as economic incentives to encourage firms' green behaviors, including government R&D support, policy‐related funds, and discounted loans (Xie, Zhu, & Wang, 2019).…”

Section: Introductionmentioning

confidence: 99%

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Sustaining the sustainable development: How do firms turn government green subsidies into financial performance through green innovation?

She

et al. 2021

Bus Strat Env

118

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The impact of government green subsidies on firms' green innovation behaviors and sustainable development has been recognized in the existing literature, but the deep relationship remains poorly understood. This study aims to examine the mechanism of how government green subsidies influence firms' financial performance via green innovation and how the mediating effect varies under different contingent conditions. Empirical results based on data of Chinese listed companies between 2006 and 2018 reveal that green subsidies have positive effects on green process and product innovation, but only green product innovation can rise higher financial performance, which further verifies that green subsidies positively influence financial performance through green product innovation rather than green process innovation. In addition, both higher absorptive capacity and higher market turbulence strengthen the indirect effect of green subsidies on firms' financial performance via green product innovation. Our study provides useful implications for enterprises by revealing the influence mechanism of green subsidies on financial performance through green innovation under different leveraging levels of internal and external conditions. It also provides basis for the government to formulate relevant environmental policies.

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Section: Methodsmentioning

confidence: 99%

“…In this study, we choose China as our focus because although China's industrial enterprises have promoted the rapid economic development; they seriously pollute the natural environment (Li et al, 2020). On the one hand, we obtained data on enterprises' green process and product innovation from corporate social responsibility reports.…”

Section: Data Sourcementioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Sustaining the sustainable development: How do firms turn government green subsidies into financial performance through green innovation?

She

et al. 2021

Bus Strat Env

118

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“…Based on the outer weights of the preferred green product characteristics, it can be deduced that Malaysian customers prefer eco-labeling followed by energy efficiency. Apart from environmental awareness, customer preferences can also be based on cost savings (Li et al , 2020). According to Zhang et al (2020), the energy-saving features of a product can increase customer preferences based on the rationale that the customers save money for energy use over time even though the product is more expensive compared to others.…”

Section: Discussionmentioning

confidence: 99%

Green product preferences considering cultural influences: a comparison study between Malaysia and Indonesia

Ghazali

Abdul-Rashid

Dawal

et al. 2021

MEQ

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PurposeThere is an increasing awareness among manufacturers to make production more sustainable in Southeast Asian countries such as Malaysia and Indonesia. Manufacturers are now urged to not only focus on the business profit but also concern on environment protection by producing green products. However, issues may arise regarding the preferences of customers on green products, which will vary due to the influence of cultural values. This will give an impact on the marketing of green products. The aim of this study is to identify the influence of cultural values on the green products design in Malaysia and Indonesia.Design/methodology/approachA pretest on the survey instruments was performed to ensure the reliability and validity of the questionnaire. The collected data were statistically analyzed based on the satisfaction level, confirmatory factor analysis and structural equation modeling.FindingsThe results showed that customer preferences in Malaysia were mostly influenced by uncertainty avoidance, long-term orientation and power distance, excluding collectivism and masculinity. In Indonesia, the dimension of uncertainty avoidance and long-term orientation had significant influence, whereas power distance, masculinity and collectivism dimension had no influence. Eco-label was identified as the most important factor for green products in Malaysia and having product services characteristics factor for product lifetime extension in Indonesia.Practical implicationsFor practices, the cultural values and preferred characteristics identified in this study provide valuable information to policymakers and businesses on what draws customers toward green products in Malaysia and Indonesia. This finding can be used as supported data for the policymakers in order to achieve sustainable development goal (SDGs) in Malaysia and Indonesia.Originality/valueThe findings of this study provide valuable information for designers to design products with green characteristics that cater to the consumer market in Malaysia and Indonesia, as well as other countries which may have similar cultural traits.

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“…In recent years, the governments have formulated some policies to intervene in the behavior of enterprise, which has attracted the attention of scholars. Li et al explored the governments' optimal green subsidy mechanism and revealed that the governments can not always benefit from green subsidies [33]. Ma et al explored the optimal green level under the governments' subsidies and cooperative contracts and derived that subsiding the manufacturer and retailer simultaneously can achieve a higher green level [34].…”

Section: E General Game To Study Government and Enterprisementioning

confidence: 99%

Government Low‐Carbon Policies Optimization for Smart Transportation Enterprises

Gao

Guo

Liu

et al. 2022

Discrete Dynamics in Nature and Society

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As an important part of energy saving and carbon reduction, the low-carbon development of the transportation industry is imperative. It is the responsibility of smart transportation enterprises to closely combine their own digital technology with the governments’ policies to achieve green innovation. In this study, we conducted an evolutionary game model of the interaction between the governments and smart transportation enterprises, which depended on innovation subsidies and punitive taxes. Besides, we derived the evolutionarily stable strategy of the governments and enterprises and used a simulation to analyze the impact of various policy tools on green innovation strategy. The results showed that the behavior of the governments relies on the benefits of supervision and the costs of supporting green technology innovation. The enterprises’ behavior depends on the benefits of green innovation and the loss of no green innovation. Moreover, different policy tools provided by the governments can accelerate the implementation of enterprises’ green innovation.

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The choice of the government green subsidy scheme: innovation subsidy vs. product subsidy

Cited by 128 publications

References 34 publications

Sustaining the sustainable development: How do firms turn government green subsidies into financial performance through green innovation?

Sustaining the sustainable development: How do firms turn government green subsidies into financial performance through green innovation?

Green product preferences considering cultural influences: a comparison study between Malaysia and Indonesia

Government Low‐Carbon Policies Optimization for Smart Transportation Enterprises

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