The Role of Public and Private Interventions on the Evolution of Green Innovation in China

Abstract

China's future economy is in jeopardy due to climate change, zero COVID policy, supply chain disruption, surging inflation, and the energy crisis due to Russia Ukraine war. Additionally, the government pledges to the Paris agreement and COP27: The UN Climate Change Conference to combat with climate change crisis through the reduction of carbon and greenhouse gases emission. In these uncertain conditions, climate pledges, and shifts to a greener economic system, it is essential to investigate the public and private interventions on the evolution of green innovation in China. Accordingly, we relied on public repositories, such as the World Bank, World Intellectual Property Organization, PatSnap, SIPR, China City Statistical Yearbook 2021, and the Peking University Digital Financial Inclusion Index of China from 2009 to 2021 in 280 Chinese cities, to investigate the role of public and private interventions in the growth of green innovation. Our findings indicate that one interquartile range increase in government intervention, imperative environment regulations, gross regional domestic product, investment in environmental pollution, actual foreign investment, market pull, and material increase the green innovation growth at the Chinese city level. At the same time, we did not find a significant relationship between energy and green innovation. Moreover, the study paves the path for policymakers to remodify and develop policies on the different authoritative levels, which can reshape the Chinese green economy in the long run.