The Impact of Economic Policy Uncertainty on Green Technology Innovation of New Energy Vehicle Enterprises in China

Abstract

Against the backdrop of increasingly serious global carbon emissions and environmental challenges, new energy vehicles (NEVs), as important low-carbon means of transport, play a crucial role in reducing carbon emissions, enhancing energy efficiency, and promoting sustainable development. However, green technological innovation is under considerable pressure from economic policy uncertainty (EPU), and the exact effects are not well understood. Using panel data on listed companies’ green technological innovation from 2012 to 2022, this study examines the relationship between EPU and green technological innovation in Chinese NEV enterprises. The findings reveal that rising EPU has a significant negative impact on green technological innovation in these companies; however, company ESG performance and government financial subsidies can effectively mitigate this negative impact. Notably, in provinces where public environmental concerns are high, the moderating effect of government subsidies is weaker; while facing EPU, NEV manufacturers rely more on government subsidies for green technological innovation than do parts manufacturers. These findings provide critical insights for guiding NEV enterprises in coping with EPU, advancing green technological innovation, and offering appropriate support and incentives to policymakers.