Abstract
Environmentally induced R&D (ER&D) has been positioned as an essential factor in emission reduction and total factor carbon productivity (TFCP) improvement; however, how government support moderates ER&D's impact on TFCP is unclear. Using 30 Chinese provinces' panel data for 1998–2020, this paper applies the systemic generalized method of moments (SYS-GMM), dynamic threshold, and spatial Durbin models to explore ER&D's impact on TFCP under various types of government support. The results show a “U-shaped” ER&D-TFCP relationship. All types of government support can positively moderate ER&D's impact on regional TFCP. With government support as the threshold variable, ER&D's impact on green total factor productivity gradually increases. Moreover, ER&D and government support show a spatial spillover effect on TFCP. This paper offers policy implications about ER&D investment and TFCP improvement for China and other developing countries.
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