Schumpeterian endogenous growth model under green innovation and its enculturation effect

Abstract

This paper studies the economic system in which the preference of enterprises and residents to practice green behavior becomes a common form. This economic system shall be referred to as the economic system under the green development pattern, this paper divides its development stage into two parts: the green development transformation stage and the green innovation stage. As the system transitions from the former stage to the latter, the innovation system composed of quality innovation and variety innovation will transition to an innovation system with three innovation modes: quality innovation, variety innovation and green innovation. In the green innovation stage, green innovation is transformed into endogenous elements of the economic system, which requires a study of the endogenous growth model and growth law, in light of new endogenous elements. This paper establishes the Schumpeterian endogenous growth model under the green development pattern (hereafter the Green Schumpeterian Model). This new model takes green innovation into account and combines the growth rate of residents' green behavior awareness level, the green discount rate, and the penetration rate of green innovation. The research findings indicate that green innovation leads to the economic enculturation effect and the environmental enculturation effect in the economic system under the green development pattern, achieving explosive in economic growth and environmental protection. Under the green development pattern, there is a new spatial Kuznets curve relationship between pollution emissions, the green innovation level, and the output level. The point at which pollution emissions reach their peak represents the turning point of the spatial Kuznets curve. Furthermore, by reducing the green discount rate and increasing the growth rate of residents' green behavioral awareness level, a nonlinear positive impact can be observed on the explosive mechanism of green innovation.