Public appeal, environmental regulation and green investment: Evidence from China
By X. Liao, Xunpeng Shi. Energy Policy, 2018
398 citations recorded by the source corpus.
While China has enjoyed rapid economic growth, its environment is deteriorating. One critical solution is to shift from fossil fuels to renewable energy. Although carbon markets may provide some financial sources, other financial institutions are needed to raise green investment in order to achieve low carbon growth. This study examines the determinants of green investment in China from the perspective of public appeal by employing economic and econometric models with a panel dataset for 30 provinces over the period from 1998 to 2014. Our results demonstrate that public appeal tends to have a positive effect on increasing green investment in China's context. Other findings show that industry structure, population, and regional Gross Domestic Product have significantly positive impacts on green investment, while openness, energy mix, carbon markets, and Foreign Direct Investment have significantly negative effects on green investment. Importantly, the results of channel analysis suggest that public appeal promotes local governments’ enforcement of stricter environmental regulation, thereby encouraging firms to increase their green investment.
Subfields: Economics and Econometrics, Marketing
View Paper: https://www.semanticscholar.org/paper/ddfd626b8842beb4bba19f4aca2dcec6c16923f3
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Citations in the corpus
- Green growth versus economic growth: Do sustainable technology transfer and innovations lead to an imperfect choice? (2021, background): “…the development and adoption of sustainable technology transfer still face political (Yoshino, Taghizadeh-Hesary, & Nakahigashi, 2019), market (Agyemang, Zhu, Adzanyo, Antarciuc, & Zhao, 2018), knowledge and awareness (Liao & Shi, 2018), and financial barriers (Bhandari, Singh, & Garg, 2019).”
- The Link between Economic Complexity and Carbon Emissions in the European Union Countries: A Model Based on the Environmental Kuznets Curve (EKC) Approach (2019, positive): “In addition, the promotion of green investments in economy could not just introduce new sophisticated products on the market and contribute to the advance of economic complexity, but also reduces the share of pollutant technologies, as suggested by Liao and Shi (2018) [42].”