Abstract
The impact of pilot free trade zones (PFTZs) on companies' low-carbon innovation is not yet studied. In response, this paper considers the establishment of PFTZs as a quasi-natural experiment, using panel data on China's A-share industrial listed companies for the period 2010–2021 and utilizing the entropy balancing difference-in-differences (EB-DID) model to examine PFTZs' impact on companies' low-carbon innovation. The results show that: (1) PFTZs significantly promote companies' low-carbon innovation in pilot cities through the “promoting R&D effect” and the “environmental governance effect”; (2) Foreign capital positively moderates PFTZs' impact on companies' low-carbon innovation; (3) PFTZs' policy effect is characterized by spatial heterogeneity. The paper thus suggests that the government should improve the construction plans of PFTZs to ensure alignment with low-carbon development goals. Moreover, the government should also provide appropriate subsidies for low-carbon technology R&D to encourage innovation, implement advanced institutional systems to facilitate local companies' low-carbon transition, attract high-quality foreign investments to drive the inflow of innovation elements, and optimize the geographical distribution of PFTZs to maximize the spatial spillover effect.
Published Version
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call