Environmental Regulation and Corporate R&D Investment—Evidence from a Quasi-Natural Experiment
dc.contributor.author | Huang, J.C. | |
dc.contributor.author | Zhao, J. | |
dc.contributor.author | Cao, June | |
dc.date.accessioned | 2021-10-16T11:16:55Z | |
dc.date.available | 2021-10-16T11:16:55Z | |
dc.date.issued | 2021 | |
dc.identifier.citation | Huang, J.C. and Zhao, J. and Cao, J. 2021. Environmental Regulation and Corporate R&D Investment—Evidence from a Quasi-Natural Experiment. The International Review of Economics & Finance. 72: pp. 154-174. | |
dc.identifier.uri | http://hdl.handle.net/20.500.11937/86026 | |
dc.identifier.doi | 10.1016/j.iref.2020.11.018 | |
dc.description.abstract |
The question of whether environmental regulation stimulates innovation activities has long been important and controversial. This study explores an ideal setting, the low-carbon city pilot program conducted by the Chinese government as a quasi-natural experiment to address this question. We conduct a difference-in-differences approach to analyze the impact of environment regulation on R&D investment. We find that the program's adoption has led to an increase in R&D investment of 0.145% as a percentage of total assets and 0.273% as a percentage of sales, indicating a positive effect of environmental regulation on R&D expenditures. The increase in R&D expenditures is greater for firms experiencing a larger increase in government subsidies, a greater decline in corporate tax or a greater improvement in financial condition following the low-carbon pilot program. A series of robustness tests support a causal interpretation of our findings and indicate that the observed effect of the low-carbon pilot program on corporate R&D investment is unlikely driven by chance. Our results provide in-depth insights into the economic consequences of low-carbon regulation policies which could be of interest to academic researchers and policymakers. | |
dc.relation.uri | https://doi.org/10.1016/j.iref.2020.11.018 | |
dc.title | Environmental Regulation and Corporate R&D Investment—Evidence from a Quasi-Natural Experiment | |
dc.type | Journal Article | |
dcterms.source.volume | 72 | |
dcterms.source.startPage | 154 | |
dcterms.source.endPage | 174 | |
dcterms.source.issn | 1059-0560 | |
dcterms.source.title | The International Review of Economics & Finance | |
dc.date.updated | 2021-10-16T11:16:55Z | |
curtin.department | School of Accounting, Economics and Finance | |
curtin.accessStatus | Fulltext not available | |
curtin.faculty | Faculty of Business and Law | |
curtin.contributor.orcid | Cao, June [0000-0003-2981-4174] | |
curtin.contributor.scopusauthorid | Cao, June [57210977278] |
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