How Does Environmental Law Affect Companies' R&D Capabilities? ——An Example from Guangdong During 11th Five Year Plan

Research Article
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How Does Environmental Law Affect Companies' R&D Capabilities? ——An Example from Guangdong During 11th Five Year Plan

Moyan Chen 1* , Lingyi Shi 2 , Xiang Fang 3 , Hao Qin 4
  • 1 International School of Business Finance, Sun Yat-Sen University, Guangzhou, China    
  • 2 Institute of Economics, Huazhong University of Science and Technology, Hubei, China    
  • 3 International finance class, School of Economics, Beijing Wuzi University, Beijing, China    
  • 4 Basis International School Hangzhou, Hangzhou, China    
  • *corresponding author chenmy93@mail2.sysu.edu.cn
Published on 21 March 2023 | https://doi.org/10.54254/2754-1169/3/2022790
AEMPS Vol.3
ISSN (Print): 2754-1177
ISSN (Online): 2754-1169
ISBN (Print): 978-1-915371-15-7
ISBN (Online): 978-1-915371-16-4

Abstract

Since reform and opening up, China's economy has grown rapidly, while a heavy environmental price has also been paid. Today under the goal of "dual carbon", it is urgent to promote the transformation and upgrading of enterprises to achieve green development. This paper takes the manufacturing enterprises in Guangdong province as the research sample, and takes the environmental regulation of the "Eleventh Five-Year " policy as the quasi-natural experiment, and empirically explores the impact of environmental regulation on the transformation of enterprises through the PSM-DID method. This work finds that what affect companies’ R&D expenses significantly are those nonpolicy factors. And the increase of years of company operation and income will promote the investment in innovation of the enterprise. The paper concludes that increasing the input of R&D by executing environmental restriction policy is not reliable, and environmental regulation may require further intervention in firm internal performance to be effective.

Keywords:

PSM-DID, environment protection law, 11th Five Year Plan

Chen,M.;Shi,L.;Fang,X.;Qin,H. (2023). How Does Environmental Law Affect Companies' R&D Capabilities? ——An Example from Guangdong During 11th Five Year Plan. Advances in Economics, Management and Political Sciences,3,246-253.
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References

[1]. Wang, M., Webber, M., Finlayson, B., & Barnett, J. (2008). Rural industries and water pollution in China. Journal of Environmental management, 86(4), 648-659.

[2]. Ebenstein, A., Fan, M., Greenstone, M., He, G., Yin, P., & Zhou, M. (2015). Growth, pollution, and life expectancy: China from 1991-2012. American Economic Review, 105(5), 226-31.

[3]. Zhao,H.(2008) The lmpact of Environmental Regulation on Industrial Technological lnnovation——An Empirical Research Based on the Panel Data from China [J]. Industrial Economics Research,2008(03):35-40.

[4]. Porter M E，Linde C． Toward a new conception of the environment-competitiveness relationship[J]． Journal of Economic Perspect，1995， 9( 4) : 97-118.

[5]. Chakraborty P，Chatterjee C． Does environmental regulation indirectly induce upstream innovation? New evidence from India [J]． Ｒe- search Policy，2017，46( 5) : 939-955．

[6]. Ziesemer T． A knowledge-based view of the porter hypothesis[J].Environmental Policy and Governance，2013( 23) : 193-208．

[7]. Hottenrott H，Ｒexh S． Policy-induced environmental technology and inventive efforts: Is there a crowding out? [J]． Social Science Elec- tronic Publishing，2015，22( 5) : 375-401．

[8]. Rosenbaum P R, Rubin D B. The Central Role of the Propensity Score in Observational Studies for Causal Effects[J]. Biometrika, 1983, 70(01): 41-55.

[9]. General Office of the State Council. (2007) Circular of The General Office of the State Council on printing and distributing the plan for the first National Survey of pollution sources. http://www.gov.cn/gongbao/content/2007/content_663682.htm

[10]. James H., Hidehiko I., Jeffrey S. & Petra T.Characterizing Selection Bias Using Experimental Data.Econometrica, Vol. 66, no. 5 (1999): 1017-1098.

Cite this article

Chen,M.;Shi,L.;Fang,X.;Qin,H. (2023). How Does Environmental Law Affect Companies' R&D Capabilities? ——An Example from Guangdong During 11th Five Year Plan. Advances in Economics, Management and Political Sciences,3,246-253.

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About volume

Volume title: Proceedings of the 6th International Conference on Economic Management and Green Development (ICEMGD 2022), Part Ⅰ

ISBN：978-1-915371-15-7(Print) / 978-1-915371-16-4(Online)
Editor：Javier Cifuentes-Faura, Canh Thien Dang
Conference website: https://www.icemgd.org/
Conference date: 6 August 2022
Series: Advances in Economics, Management and Political Sciences
Volume number: Vol.3
ISSN：2754-1169(Print) / 2754-1177(Online)

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References

[1]. Wang, M., Webber, M., Finlayson, B., & Barnett, J. (2008). Rural industries and water pollution in China. Journal of Environmental management, 86(4), 648-659.

[2]. Ebenstein, A., Fan, M., Greenstone, M., He, G., Yin, P., & Zhou, M. (2015). Growth, pollution, and life expectancy: China from 1991-2012. American Economic Review, 105(5), 226-31.

[3]. Zhao,H.(2008) The lmpact of Environmental Regulation on Industrial Technological lnnovation——An Empirical Research Based on the Panel Data from China [J]. Industrial Economics Research,2008(03):35-40.

[4]. Porter M E，Linde C． Toward a new conception of the environment-competitiveness relationship[J]． Journal of Economic Perspect，1995， 9( 4) : 97-118.

[5]. Chakraborty P，Chatterjee C． Does environmental regulation indirectly induce upstream innovation? New evidence from India [J]． Ｒe- search Policy，2017，46( 5) : 939-955．

[6]. Ziesemer T． A knowledge-based view of the porter hypothesis[J].Environmental Policy and Governance，2013( 23) : 193-208．

[7]. Hottenrott H，Ｒexh S． Policy-induced environmental technology and inventive efforts: Is there a crowding out? [J]． Social Science Elec- tronic Publishing，2015，22( 5) : 375-401．

[8]. Rosenbaum P R, Rubin D B. The Central Role of the Propensity Score in Observational Studies for Causal Effects[J]. Biometrika, 1983, 70(01): 41-55.

[9]. General Office of the State Council. (2007) Circular of The General Office of the State Council on printing and distributing the plan for the first National Survey of pollution sources. http://www.gov.cn/gongbao/content/2007/content_663682.htm

[10]. James H., Hidehiko I., Jeffrey S. & Petra T.Characterizing Selection Bias Using Experimental Data.Econometrica, Vol. 66, no. 5 (1999): 1017-1098.

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