Environmental regulation and firm R&D investment: crowding out or inducing-- Empirical evidence from the collection of sulfur dioxide pollution fees

XIANG Rui-bing; TIAN Cheng-shi; ZHANG Yan-chao

PDF(1487 KB)

China Environmental Science ›› 2023, Vol. 43 ›› Issue (12) : 6803-6816.

Environmental Impact Assessment and Management

Environmental regulation and firm R&D investment: crowding out or inducing-- Empirical evidence from the collection of sulfur dioxide pollution fees

XIANG Rui-bing¹, TIAN Cheng-shi¹, ZHANG Yan-chao²

Author information +

History +

Abstract

This paper takes SO₂ emission fee, a market-based environmental regulation tool, as an example, and uses the data of China's non-financial listed enterprises from 2007 to 2019 to investigate the relationship between environmental regulation, firms’ R&D investment and stock market value. It is found that SO₂ emission fee has a significant effect on the increase of R&D investment, and R&D investment has a significant effect on the fluctuation of stock market value. In terms of R&D investment, the incentive effect of SO₂ emission fee on non-state-owned enterprises, small and medium-sized enterprises, senior executives' equity incentive, medium and high emission enterprises is stronger. In terms of stock market value, R&D investment under different levels of SO₂ emission fee has a significant positive impact on stock market value fluctuations. On the one hand, the improvement of SO₂ emission fee standard can cause green patent innovation except for enterprises in the low SO₂ emission industry. On the other hand, under the background of environmental regulation, enterprises in medium and high SO₂ emission industries apply R&D investment to improve their ability to absorb external advanced knowledge and technology to absorb "innovation", which proves that R&D investment has a two-way effective path to promote "endogenous self-green innovation" and "exogenous absorption innovation".

Key words

enterprise innovation / environmental regulation / pollution charge / R&D investment

Cite this article

EndNote

Ris (Procite)

Bibtex

Download Citations

XIANG Rui-bing, TIAN Cheng-shi, ZHANG Yan-chao. Environmental regulation and firm R&D investment: crowding out or inducing-- Empirical evidence from the collection of sulfur dioxide pollution fees[J]. China Environmental Science. 2023, 43(12): 6803-6816

References

[1] Pigou A C. The economics of welfare[M]. London: Macmillan, 1920.
[2] Acemoglu D, Aghion P, Bursztyn L, et al. The environment and directed technical change[J]. American Economic Review, 2012,102(1):131-166.
[3] Petrick S, Wagner U J. The impact of carbon trading on industry: Evidence from German manfacturing firms[R]. Kiel Institute for the World Economy, Kiel Working Paper, 2014.
[4] 郭俊杰,方颖,杨阳.排污费征收标准改革是否促进了中国工业二氧化硫减排[J]. 世界经济, 2019,42(1):121-144. Guo J J, Fang Y, Yang Y. Whether the reform of sewage fee collection standard promotes the emission reduction of industrial sulfur dioxide in China[J]. World Economy, 2019,42(1):121-144.
[5] 陈诗一,张建鹏,刘朝良.环境规制、融资约束与企业污染减排——来自排污费标准调整的证据[J]. 金融研究, 2021,(9):51-71. Chen S Y, ZHANG J P, LIU C L. Environmental regulation, financing constraints and enterprise pollution reduction: Evidence from the adjustment of pollution fee standard[J]. Financial Research, 2021,(9): 51-71.
[6] 董直庆,王辉.市场型环境规制政策有效性检验——来自碳排放权交易政策视角的经验证据[J]. 统计研究, 2021,(10):48-61. Dong Z Q, Wang H. Testing the effectiveness of market-based environmental regulation policies:Empirical evidence from the perspective of carbon emission trading policies[J]. Statistical Research, 2021,(10):48-61.
[7] Porter M E. America's green strategy[J]. Scientific American, 1991,264(4):193-246.
[8] Porter M E, C van der Linde. Toward a new conception of the environment-competitiveness relationship[J]. Journal of Economics Perspectives, 1995,9(4):97-118.
[9] Berman E, Bui L T M. Environmental regulation and productivity: Evidence from oil refineries[J], Review of Economics and Statistic, 2001,88(3):498-510.
[10] Brunnermeier S B, Cohen M A. Determinants of environmental innovation in US manufacturing industries[J]. Journal of Environmental Economics and Management, 2003,45(2):278-293.
[11] Hamamoto M. Environmental regulation and the productivity of Janpanese manufacturing industries[J]. Resource & Energy Economics, 2006,28(4):299-312.
[12] 李青原,肖泽华.异质性环境规制工具与企业绿色创新激励——来自上市企业绿色专利的证据[J]. 经济研究, 2020,(9):192-208. Li Q Y, Xiao Z H. Heterogeneous environmental regulation tools and corporate green innovation incentives: Evidence from green patents of listed companies[J]. Economic Research Journal, 2020,(9):192-208.
[13] Gollop F M, Roberts M J. Environmental regulations and productivity growth: The case of fossil-fueled electric power generation[J]. Journal of Political Economy, 1983,91(4):654-674.
[14] Gray W B. The cost of regulation: OSHA, EPA and the productivity slowdown[J]. American Economic Review, 1987,77(5):998-1006.
[15] He G J, Wang S D, Zhang B. Watering down environmental regulation in China[J]. Quarterly Journal of Economics, 2020,135(4):2135-2185.
[16] Kemp R, Pontoglo S. The Innovation effects of environmental policy instruments--A typical case of the blind men and the elephan[J]. Ecological Economics, 2011,72(1):28-36.
[17] Cainelli G, Marchi V D, Grandinetti R. Does the development of environmental innovation require different resources? Evidence from Spanish manufacturing firms[J]. Journal of Cleaner Production, 2015, 94(1):211-220.
[18] Knellerr R, Manderson E. Environmental regulations and innovation activity in UK manufacturing industries[J]. Resource and Energy Economics, 2012,34(2):211-235.
[19] 涂正革,谌仁俊.排污权交易机制在中国能否实现波特效应?[J]. 经济研究, 2015,(7):160-173. Tu Z G, Chen R J. Whether the emission trading mechanism can realize the Porter effect in China?[J]. Economic Research Journal, 2015,(7):160-173.
[20] 牛美晨,刘晔.提高排污费能促进企业创新吗?——兼论对我国环保税开征的启示[J]. 统计研究, 2021,(7):87-99. Niu M C, Liu Y. Can higher sewage charges boost corporate innovation?——Implications for China's environmental protection tax[J]. Statistical Research, 2021,(7):87-99.
[21] 沈坤荣,金刚,方娴.环境规制引起了污染就近转移吗?[J]. 经济研究, 2017,(5):44-59. Shen K R, King K, Fang X. Do environmental regulations cause pollution to move closer?[J]. Economic Research Journal, 2017,(5): 44-59.
[22] Xie X M, Huo J G, Qi G Y, et al. Green process innovation and financial performance in emerging economies:Moderating effects of absorptive capacity and green subsidies[J]. IEEE Transactions on Engineering Management, 2016,63(1):101-112.
[23] 龙小宁,万威.环境规制、企业利润率与合规成本规模异质性[J]. 中国工业经济, 2017,(6):155-174. Long X N, Wan W. Environmental regulation, firm profit margin and scale heterogeneity of compliance cost[J]. China Industrial Economics, 2017,(6):155-174.
[24] 杜龙政,赵云辉,陶克涛,等.环境规制、治理转型对绿色竞争力提升的复合效应——基于中国工业的经验证据[J]. 经济研究, 2019, (10):106-120. Du L Z, Zhao Y H, Tao K T, et al. The compound effect of environmental regulation and governance transformation on the improvement of green competitiveness:Based on the empirical evidence of Chinese industry[J]. Economic Research Journal, 2019, (10):106-120.
[25] 李俊青,高瑜,李响.环境规制与中国生产率的动态变化:基于异质性企业视角[J]. 世界经济, 2022,(1):82-109. Li J Q, Gao Y, Li X. Environmental regulation and the dynamic change of productivity in China:From the perspective of heterogeneous firms[J]. The Journal of World Economy, 2022,(1):82-109.
[26] Xu X D, Zeng S X, Zou H L, et al. The impact of corporate environmental violation On shareholders'wealth:A perspective taken from media coverage[J]. Business Strategy & the Environment, 2016,25(2):73-91.
[27] Brown J R, Martinsson G, Thomann C. Can environmental policy encourage technical change? Emissions taxes and R&D investment in polluting firms[J]. The Review of Financial Studies, 2022,35(10): 4518-4560.
[28] 陶锋,赵锦瑜,周浩.环境规制实现了绿色技术创新的“增量提质”吗——来自环保目标责任制的证据[J]. 中国工业经济, 2021, (2):136-154. Tao F, Zhao J Y, Zhou H. Do environmental regulations achieve "incremental improvement" in green technology innovation? Evidence from the accountability system of environmental targets[J]. China Industrial Economy, 2021,(2):136-154.
[29] Keller W, Levinson A. Pollution abatement costs and foreign direct investment inflows to U.S. states[J]. Review of Economics and Statistics, 2002,84(4):691-703.
[30] Petroni G, Bigliardi B, Galati F. Rethinking the porter hypothesis: The underappreciated importance of value appropriation and pollution intensity[J]. Review of Policy Research, 2019,36(1):121-140.
[31] 徐彦坤,祁毓.环境规制对企业生产率影响再评估及机制检验[J]. 财贸经济, 2017,38(6):147-161. Xu Y K, Qi Y. Reassessment and mechanism test of environmental regulation's impact on firm productivity[J]. Finance & Trade Economics, 2017,38(6):147-161.
[32][德]约瑟夫·熊彼特.经济发展理论[M]. 何畏,易家详译.北京:商务印书馆, 1990.[D] Joseph S. Economic development theory[M]. He W, translated by Yi J. Beijing: The Commercial Press, 1990.
[33] Belloc F. Comporate governance and innovation:A survey[J]. Journal of Economic Surveys, 2012,26(5):835-854.
[34] Low A. Managerial risk-taking behavior and equity-based compensation[J]. Journal of Financial Economics, 2009,92(3):470-490.
[35] Tosi H L, Werner S, Katz J P, et al. How much does performance matter?A meta-analysis of CEO pay studies[J]. Journal of Management, 2000,26(2):301-339.
[36] Shue K, Townsend R R. How do quasi-random option grants affect CEO risk-taking[J]. The Journal of Finance, 2017,72(6):2551-2588.
[37] 赵世芳,江旭,应千伟,等.股权激励能抑制高管的急功近利倾向吗——基于企业创新的视角[J]. 南开管理评论, 2020,23(6):76-87. Zhao S F, Jiang X, Ying Q W, Huo D. Can equity incentive restrain executive's tendency of quick success and quick profit? Based on the perspective of enterprise innovation[J]. Nankai Business Review, 2019,23(6):76-87.
[38] Arrow K J. The economic implications of learning by doing[J]. Social Science Electronic Publishing, 1962,29(80):155-173.
[39] 周铭山,张倩倩,杨丹.创业板上市公司创新投入与市场表现:基于公司内外部的视角[J]. 经济研究, 2017,52(11):135-149. Zhou M S, Zhang Q Q, Yang D. Innovation investment and market performance of GEM listed companies:From the perspective of internal and external companies[J]. Economic Research Journal, 2017, 52(11):135-149.
[40] 吴晓晖,郭晓冬,乔政.机构投资者网络中心性与股票市场信息效率[J]. 经济管理, 2020,42(6):153-171. Wu X H, Guo X D, Qiao Z. The centrality of institutional investor network and the information efficiency of stock market[J]. Business and Management Journal, 2019,42(6):153-171.
[41] 郭晓冬,柯艳蓉,吴晓晖.坏消息的掩盖与揭露:机构投资者网络中心性与股价崩盘风险[J]. 经济管理, 2018,40(4):153-171. Guo X D, Ke Y R, Wu X H. The cover-up and disclosure of bad news:The centrality of institutional investor network and the risk of stock price collapse[J]. Economic Management, 2018,40(4):153-171.
[42] 罗荣华,王良,赵鹭.机构投资者网络结构与公司创新:“潜在购买”的治理效应研究[J]. 管理世界, 2023,39(6):120-144. Luo R H, Wang L, Zhao L. Institutional investor network structure and firm innovation:A study on the governance effect of "potential buying"[J]. Journal of Management World, 2019,39(6):120-144.
[43] Jaffe A B, Palmer K. Environmental regulation and innovation:A panel data study[J]. Review of Economics and Statistics, 1997,79(4):610-619.
[44] Hall B H, Oriani R. Does the market value R&D investment by European firms?Evidence from a panel of manufacturing firms in France, Germany, and Italy[J]. International Journal of Industrial Organization, 2006,24(5):971-93.
[45] 张叶青,陆瑶,李乐芸.大数据应用对中国企业市场价值的影响——来自中国上市公司年报文本分析的证据[J]. 经济研究, 2021, (12):42-59. Zhang Y Q, Lu Y, Li L Y. The impact of big data application on the market value of Chinese enterprises:Evidence from the text analysis of Chinese listed companies' annual reports[J]. Economic Research Journal, 2021,(12):42-59.
[46] 杨国超,刘静,廉鹏,等.减税激励、研发操纵与研发绩效[J]. 经济研究, 2017,(8):110-124. Yang G C, Liu J, Lian P, Rui M. Tax incentive, R&D manipulation and R&D performance[J]. Economic Research Journal, 2017,(8):110-124.
[47] 段军山,庄旭东.金融投资行为与企业技术创新——动机分析与经验证据[J]. 中国工业经济, 2021,(1):155-173. Duan J S, Zhuang X D. Financial investment behavior and firm technological innovation:Motivation analysis and empirical evidence[J]. China Industrial Economics, 2021,(1):155-173.
[48] 张嘉望,彭晖,李博阳.地方政府行为、融资约束与企业研发投入[J]. 财贸经济, 2019,(7):20-35. Zhang J W, Peng H, Li B Y. Local government behavior, financing constraints and enterprise R&D investment[J]. Finance & Trade Economics, 2019,(7):20-35.
[49] 尹美群,盛磊,李文博.高管激励、创新投入与公司绩效——基于内生性视角的分行业实证研究[J]. 南开管理评论, 2018,(1):109-117. Yin M Q, Sheng L, Li W B. Executive motivation, innovation input and firm performance: An empirical study of different industries based on endogenous perspective[J]. Nankai Business Review, 2018,(1): 109-117.
[50] 赵瑞丽,尹翔硕,孙楚仁.大城市的低加成率之谜:集聚效应和竞争效应[J]. 世界经济, 2019,(4):149-173. Zhao R L, Yin X S, Sun C R. The mystery of low mark-up rates in large cities: Agglomeration effects and competition effects[J]. The Journal of World Economy, 2019,(4):149-173.
[51] 邹萍.地区经济发展、社会责任行为与科技创新投入[J]. 科学学研究, 2018,(5):922-932. Zou P. Regional economic development, social responsibility behavior and technological innovation input[J]. Studies in Science of Science, 2018,(5):922-932.
[52] 方先明,那晋领.创业板上市公司绿色创新溢酬研究[J]. 经济研究, 2020,(10):106-123. Fang X M, Na J L. Research on green innovation profit of GEM listed companies[J]. Economic Research Journal, 2020,(10):106-123.
[53] 解维敏,唐清泉.企业研发投入与实际绩效:破题A股上市公司[J]. 改革, 2011,(3):100-107. Xie W M, Tang Q Q. R&D investment and actual performance of enterprises: Breaking the problem of a-share listed companies[J]. Reform, 2011,(3):100-107.
[54] Aghion P, Dechezleprêtre A, Hemous D, et al. Carbon taxes, path dependency, and directed technical change: Evidence from the auto industry[J]. Journal of Political Economy, 2016,124(1):1-51.
[55] Cohen W M, D A. Levinthal. Innovation and learning: The Two Faces of R&D[J]. Economic Journal, 1989,199:569-596.
[56] 杨金玉,彭秋萍,葛震霆.数字化转型的客户传染效应——供应商创新视角[J]. 中国工业经济, 2020,(8):156-174. Yang J Y, Peng Q P, Ge Z T. Customer contagion effect of digital transformation: Perspective of supplier innovation[J]. China Industrial Economics, 2020,(8):156-174.