Green Transformation In China Research Articles

Unveiling dilemmas and countermeasures in the green transformation of China’s real estate industry through the lens of knowledge management

Purpose Effective knowledge management has played a crucial role in propelling the green transformation of organisations and industries. Nevertheless, its underutilisation in the real estate sector has impeded the progress of green transformation. Therefore, the purpose of this paper is to offer a theoretical and practical analysis of the green transformation of the real estate industry through the lens of knowledge management and to provide a valuable reference to facilitate the industry’s green transformation. Design/methodology/approach This study entailed applying induction and deduction method, using China’s real estate industry as a typical case, and collecting and analysing the public data, corporate reports and literature of China’s real estate industry. On this basis, the authors conducted an in-depth analysis of the mechanisms through which the green transformation has empowered the sustainable development of China’s real estate industry, as well as the critical role of knowledge management. Findings The study has revealed that the primary challenges encountered by China’s real estate industry during the green transformation have stemmed from significant disparities in the knowledge base among different industry entities, the complexities related to knowledge integration and the “difficulty” of applying green knowledge across the entire life cycle. To address these issues, the authors recommend several strategic actions, including creating a dedicated green knowledge platform for the real estate industry, establishing a knowledge-sharing mechanism, enhancing knowledge acquisition on both the supply and demand sides and intensifying the focus on the application of green knowledge within the real estate industry. Research limitations/implications This research holds considerable theoretical and practical significance concerning the comprehension and promotion of knowledge management’s role in the green transformation of China’s real estate industry. These insights can be applied to significantly enhance the theoretical framework of knowledge management, and the research outcomes provide substantial support for propelling the green transformation in China’s real estate industry and contributing to the sustainable development of the overall economy in China. Originality/value From a knowledge management perspective, this study introduces a series of solutions and recommendations, presenting new research ideas and pathways for advancing the green transformation of the real estate industry. In addition to guiding the industry’s sustainable development, it also significantly contributes to enhancing the theoretical framework of knowledge management.

The color of FinTech: FinTech and corporate green transformation in China

How to drive the transformation toward a green economy has become an urgent topic of concern around the world under the pressure of global warming. This study sheds light on the effect of FinTech on corporate green transformation. Based on machine learning and text analysis methods to construct the two key metrics, our findings show that FinTech promotes corporate green transformation, which is mainly achieved by alleviating information asymmetry, relaxing financial constraints and increasing risk-taking. The above conclusions remain unchanged after a series of robustness tests, such as instrumental variable and difference-in-difference methods, etc. Additionally, this positive effect is more pronounced in high-tech, non-state-owned and heavily-polluting companies, and it is amplified by the peer groups' green transformation strategies. Overall, our study reveals the green nature of FinTech and provides creative insights into the achievement of the goal of carbon emission peak and neutrality in China.

Green transformation and manufacturing value chain climbing: the moderating role of environmental regulations

ABSTRACT The promotion of environmental regulations and the realization of manufacturing value chain climbing while protecting the environment are crucial for China’s green transformation. This study analyzes how the green transformation of China’s manufacturing industry impacts the ascent of the value chain and bridges the gaps in the previous research. By analysing panel data from 30 Chinese provinces and employing the SBM-GML and fixed-effects models, this study reveals the combined mechanisms of environmental regulations on green transformation and manufacturing value chain climbing. We also consider various environmental regulations, technological development levels, and the policy environment to investigate the heterogeneity of green transformation in the manufacturing industry. The results show that: 1) Green transformation significantly promotes the climbing of China’s domestic and global manufacturing value chains; 2) Command-control and market-incentive environmental regulations negatively impact value chain climbing during green transformation, while the effects of public-participation environmental regulations are inconspicuous; 3) Challenges such as ‘low-end locking’ and technical ‘bottlenecks’ persist in China’s manufacturing value chain climbing. However, the strategic implementation of command-control environmental regulations presents a new opportunity for achieving value chain climbing.

Differentiated Paths of Regional Green Development Driven by Industrial Enterprise Innovation

A fundamental shift in the regional development pattern is crucial to achieving a comprehensive green transformation in China. Currently, innovation-driven green development is a significant strategic option for regional development. As the main body of innovation and the basic unit of regional composition, enterprises have a profound impact on the development of regional economy, society, ecology, and other aspects. However, considering China’s vast territory and significant regional differences in natural environment and industrial structure, it’s necessary to further explore the specific impact paths of regional green development driven by enterprise innovation. Therefore, taking industrial enterprises as an example, based on the panel data of 30 provinces in China from 2016 to 2020, this study verifies the impact of industrial enterprise innovation on the regional green development level by constructing a parallel multiple mediating effect model and dividing the economy into eastern, central, and western regions to discuss the specific impact paths. The results show that industrial enterprise innovation has a significant positive effect on regional green development level, via different influencing paths in each region: (1) The eastern region improves the regional green development level by narrowing the urban-rural income gap; (2) The central region improves the regional green development level by reducing resource dependence; and (3) The western region raises the regional green development level by improving the rationalization of industrial structure.

Retracted: Towards sustainable development: How does ESG performance promotes corporate green transformation

Environmental, social and governance (ESG) standards can stimulate firms' green development by improving the external information landscape. This study investigates the mechanisms through which ESG affects firms' green transformation in China. We identify the positive effects of ESG performance on firms' green innovation and total factor productivity. ESG performance refines the configuration of green innovation and stimulates substantive and ‘source reduction’ green innovation, a linchpin of firms' sustainable development. The mechanisms behind our findings include alleviating financing constraints, mitigating agency problems, and increasing research and development (R&D) investment. Interestingly, the positive effects of ESG performance on firms' green transformation are more pronounced in highly polluting and competitive industries, synergistically complementing formal environmental regulation. Overall, this paper provides a novel vantage point from which to study corporate green transformation and offers practical insights for formulating and improving market-based frameworks for green development.

How does natural resource dependence influence industrial green transformation in China? Appraising underlying mechanisms for sustainable development at regional level

Natural resource and environmental carrying capacity bound industrial green transformation, and global economies are striving to ensure sustainable transformation. In response, efficient use of natural resources and reduced natural resource dependence have emerged as critical factors, mainly in industrial countries. Hence, this study empirically assesses how natural resource dependence affects industrial green transformation using Chinese regional data from 2008 to 2020. The results reveal that natural resource dependence inhibits industrial green transformation. Although the inhibitory effects of natural resource dependence are significant in both east-central and western regions, it is more pronounced in the east-central region. It inhibits industrial green transformation by dampening marketization, industrial structure upgrading, and human capital. These findings offer valuable suggestions for effective resource management.

From Quantity to Quality: Do the Political Incentives matter for Green Transformation in China?

From Quantity to Quality: Do the Political Incentives matter for Green Transformation in China?

Exploring the effects of manufacturing servitization on enterprise energy conservation and emissions reduction moderated by digital transformation

Manufacturing servitization can reverse the low-end situation of China's manufacturing industry, which is “big but not strong,” and is an effective path to green transformation. Previous studies have neglected the impact of manufacturing servitization on enterprise energy conservation and emissions reduction (ECER). To fill this research gap, we manually compiled enterprises' servitization data combined with the microdata of listed manufacturing enterprises in China A-share from 2010 to 2019. Based on the digital transformation perspective, we explored the impact of manufacturing servitization on enterprise ECER. The conclusions are as follows: (1) manufacturing servitization promotes enterprise ECER. This finding remains robust even after the endogeneity problem is overcome using the difference-in-differences model and the instrumental variable method. (2) Manufacturing servitization's ECER performance is more significant in labor and capital-intensive and state-owned enterprises. (3) Manufacturing servitization achieves ECER by improving green technological innovation and optimizing the factor structure. (4) The moderating effect of digital transformation on manufacturing servitization and enterprise ECER is negative, implying that increased digital transformation can drive manufacturing servitization to better promote enterprise ECER. In addition, the moderating effect of digital transformation manifests only in regions with high-intensity intellectual property protections. This study highlights the direction of green transformation in China's manufacturing industry.

Impact of the Digital Economy on the Green Transformation of China's Manufacturing Industry

Based on the panel data of 29 provinces and cities in China from 2013 to 2020, the mediating effect model and the moderating effect model are used to empirically analyze the transmission role of technological innovation and industrial structure optimization in the digital economy influencing the green transformation of manufacturing industry, and the moderating role of environmental regulation in the digital economy promoting the green transformation of the manufacturing industry. The results of the empirical study show that the digital economy promotes the green transformation of the manufacturing industry through technological innovation and industrial structure optimization. On the other hand, the intensity of environmental regulation has a significant negative moderating effect on the green transformation of the manufacturing industry promoted by the digital economy.

Green financial development efficiency: a catalyst for driving China's green transformation agenda towards sustainable development.

The pursuit of a green transformation agenda in China is an important aspect of achieving sustainable development. The role played by green financial development efficiency (GFDE) in this pursuit cannot be overlooked. This paper explored the impact of GFDE on China's green transformation agenda and its contributions toward sustainable development. The study adopts a systematic approach to examine the relationship between GFDE and green transformation, utilizing relevant data and literature. The study aligns with previous research in the field that highlights the importance of green finance in reducing carbon emissions and promoting sustainable development in China. It also adds to the existing literature by specifically focusing on the role of green financial development efficiency in the pursuit of a green transformation agenda in China. The study found a significant improvement in GFDE over the period of 2010 to 2020 in promoting green transformation in China. Both systems generalized method of moments and fixed-effect models revealed that trade openness, foreign investments, technological innovation, and government budget positively influenced GFDE while energy consumption and economic policy uncertainty had a significant adverse effect on GFDE. The results of this study inform policymakers and stakeholders of the importance of green finance in promoting sustainable development. The study intimated that the financial sector should provide support for green technologies and businesses by offering range of green products such as green bonds, funds, and loans.

The Stock Performance of Financial Institutions After the Paris Agreement: The Case in China

In 2015, the signing of the Paris Agreement marked a new stage in the green transformation of the international economy. This paper aims to study the stock performance of China's listed financial institutions after the signing and implementation of the Paris Agreement and the impact of green investment on the stock performance of China's listed financial institutions during the green transition period. The data sample covers 46 A-share listed financial institutions, of which 24 financial institutions or their subsidiaries have made green investments after 2016. This study uses the event study method (ESM), based on the market model and the Fama-French three-factor model. The empirical results show that listed financial institutions have a positive abnormal stock returns around [-10, 10] after the first official announcement date of the signing of the Paris Agreement. Among them, the stocks of financial institutions that have issued green bonds have significant higher abnormal returns, outperforming those that have not issued green bonds. It reflects the positive attitude of investors towards the green transformation of China's economic market and is helpful for the formulation of green financial policies.

Does the digital economy reduce air pollution in China? A perspective from industrial agglomeration

Based on the perspective of industrial agglomeration, this paper employs a dynamic panel model and mediating effects model to investigate the impact of digital economy’s development on air pollution in 274 Chinese cities from 2011 to 2019. The main findings include: (1) The development of the digital economy reduces air pollution emissions in Chinese cities, and the elasticity of pollution reduction is greater in central and western China than in eastern China. (2) The nexus between industrial agglomeration and air pollution is inverted-N-shaped. (3) Mechanism tests show that the digital economy can effectively promote the degree of industrial agglomeration in each area, and it plays a positive role in abating pollution in eastern and central China through the positive externalities of industrial agglomeration, but the mediating effect of industrial agglomeration on pollution reduction is not significant in western China. (4) Diversified agglomeration is an active mediator of the digital economy’s pollution reduction effect in eastern and central China. Accordingly, some policy implications are put forward for simultaneously promoting the development of the digital economy and reducing air pollution, impelling industrial agglomeration, and accelerating the green transformation in China.

Uncovering the roadmap of decoupling economic growth and CO2 emissions targeting energy-resource-emission-intensive industrial parks located nearby large river: Practices and implications from China

Clustering the manufacturing industries nearby major river is a common feature globally and can offer significant benefits in terms of productivity improvement. Nonetheless, such clustering also poses extensive and far-reaching environmental burdens on the river. China is implementing a green and low-carbon transformation strategy along the Yangtze and Yellow Rivers, two of the largest rivers in its manufacturing hub. This research examines the following three ways for decoupling economic growth and CO2 emissions in a typical industrial park located along the Yangtze River, which includes the chemical industry, textile industry, glass manufacturing industry, and automobile manufacturing as pillar industries. First, we use the Tapio decoupling model and Kaya identity to forecast the decoupling paradigm between economic growth and CO2 emissions in the park by 2030 in response to policy interventions. Second, 10 two-digit level industries (TDLIs) with high energy-resource consumption and CO2 emissions in the manufacturing sector are evaluated. Third, a model is developed to determine the most appropriate approach for modifying the 10 TDLIs' structures under different scenario analysis. The main findings are as follows. It is expected that the parks could achieve a relative decoupling around 2028 and 2029 under policy interventions. In addition, tailored policies for industries with high economic output and low CO2 emissions are proposed, while their opposites are also. Lastly, the optimal way for the park to decouple economic development and CO2 emissions is to simultaneously adjust its industrial structure and upgrade its energy facilities. This would result in a 31% reduction in CO2 emissions with positive effects on the economy and continuous upgrading of the industrial structure of the park. This study will play an important role in the green transformation of China's manufacturing clusters located along the Yangtze and the Yellow Rivers and will also have implications for other similar manufacturing clusters.

How Does Agricultural Mechanization Service Affect Agricultural Green Transformation in China?

Agricultural mechanization service (AMS) is a critical path to achieving agricultural green transformation with smallholders as the mainstay of agricultural production. Based on the panel data of 30 Chinese provinces from 2011 to 2020, this paper measures the AGTFP using the Super-SBM model and examines the effects of different AMS supply agents on AGTFP and spatial spillover effects through the spatial Durbin model. The main conclusions are as follows: First, China's AGTFP showed a stable growth trend, with the mean value increasing from 0.1990 in 2011 to 0.5590 in 2020. Second, the specialization (SPO) and large-scale (LSO) of AMS supply organizations have significantly positive effect on the AGTFP of the local province. However, SPO has a significantly positive effect on the AGTFP of the neighboring provinces, while LSO has the opposite effect. Third, the specialization of AMS supply individuals (SPI) has significantly negative effect on the AGTFP of the local province. In contrast, the large-scale AMS supply individuals (LSI) has the opposite effect. Furthermore, the spatial spillover effects of both are insignificant. Fourth, the spatial spillover effect of AGTFP shows asymmetry among different regions and indicates that AMS resources flow from non-main grain production and economically developed regions to main grain production and less developed regions. These findings provide helpful policy references for constructing and improving the agricultural mechanization service system and realizing the agricultural green transformation in economies as the mainstay of agricultural production.

Digital Economy Development and Green Economic Efficiency: Evidence from Province-Level Empirical Data in China

The digital economy development promotes green transformation in China’s economy. Based on provincial-level data from 2011–2019, an ArcGIS spatial analysis is used to explore the spatial and temporal evolution patterns of the digital economy development and green economic efficiency. The digital economy development’s impact on the green economic efficiency is tested through fixed effect, mediation effect, and spatial Durbin models. The digital economy development and green economic efficiency increased during the study period. Spatial patterns of high-level areas spread to form “clusters” with surrounding areas. The digital economy development’s catalytic effect on the green economic efficiency holds after robustness and endogeneity tests. A heterogeneity analysis shows that the digital economy development promotes the green economic efficiency in the eastern and central regions; the impact on the western region is non-significant. Compared with industry digitalization, digital industrialization has a stronger promoting effect on the green economic efficiency. The digital economy development better facilitates the green economic efficiency in regions with high digital economy development levels and Big Data experimental areas. The digital economy development promotes green economic efficiency through human capital, industrial structure upgrading, and technological innovation; industrial structure upgrading has a stronger mediating effect, reaching 40%. The digital economy development facilitates the regional green economic efficiency and significantly promotes green economic efficiency in neighboring regions through spatial spillover effects.

Impacts of heterogeneous environmental regulation on green transformation of China's iron and steel industry: Evidence from dynamic panel threshold regression

Comprehensively observing the influencing mechanisms of heterogeneous environmental regulations on industrial green transformation will provide important implications for environmental policy-making. This study first proposes a global super adjusted epsilon-based measure with undesirable outputs to evaluate industrial green transformation performance (GTP). A dynamic panel threshold model with interaction term is then constructed to estimate the non-linear and interactive effects of heterogeneous regulations on GTP. Empirical tests based on 49 large- and medium-sized iron and steel (IS) firms during 2010–2017 demonstrate that: 1) The GTP of the IS industry experienced fluctuating enhancement during the observation period, and a cumulative cyclic effect is found for the GTP; 2) both formal and informal regulations improve industrial GTP, and formal regulation shows two thresholds while informal regulation has one threshold; 3) the interactive effect between formal and informal regulations has formed and exerted positive effects on GTP. Based on the empirical results, corresponding suggestions are posited to further facilitate the IS industry's green transformation and environmental governance.

Executive green investment vision, stakeholders’ green innovation concerns and enterprise green innovation performance

During the 14th Five Year Plan period, the green transformation of China’s economic growth mode has become the top priority under the carbon peak and carbon neutrality goal. As an important focus of green transformation and development, manufacturing enterprises need to carry out green innovation to cope with the dual pressure of resource and environmental constraints and supply side structural contradictions. Based on the perspective of business ecosystem theory, this study uses fsQCA method to analyze the A-share listed manufacturing enterprise clusters in China’s Yangtze River Delta economic belt and the middle reaches of the Yellow River economic belt. The research found that: 1) Manufacturing enterprises engaged in green innovation has the characteristics of multi causality and concurrence, and there are mainly four driving paths of high performance level. 2) The vision of management and investment is the core supporting factor of green innovation performance. The business ecosystem structure, which combines environmental supervision and competitors’ green innovation concerns, is the core driving structure of enterprise green innovation. 3) Compared with the academic experience of senior executives, the driving effect of environmental investment plays a greater role in improving the level of innovation performance. The innovation of this study is to introduce the green investment vision of managers and the green innovation concerns of stakeholders into the research framework of green innovation driving paths of manufacturing enterprises, explore different green innovation paths across case sets, and discuss the heterogeneity of the impact of each path on the level of green innovation performance, providing a practical plan of green innovation for managers of manufacturing enterprises, and help them understand which business ecosystem elements can promote efficient green innovation.

Carbon emissions trading policy and green transformation of China’s manufacturing industry: Mechanism assessment and policy implications

Accelerating the green transformation of manufacturing industry is the way to the sustainable development of China’s economy and an inevitable requirement for realizing the great vision of carbon peaking and carbon neutrality. This paper employs the global Malmquist-Luenberger productivity index based on the SBM-DEA method to calculate the green total factor productivity covering manufacturing industry of 30 Chinese provinces between 2006 and 2019. A difference-in-difference model is constructed to empirically study the direct impact and mechanism assessment of carbon emission trading policy on the green total factor productivity. The results show that the green total factor productivity of China’s manufacturing industry generally showed a dynamic trend of rising during this period. Critically, the implementation of the carbon emissions trading policy has a significant effect on promoting the green total factor productivity of China’s manufacturing industry. Interestingly, this promoting effect will be enhanced by higher technical levels, a cleaner energy structure, and a greener industrial structure. Additionally, our evidence also shows that the positive impact of carbon emission trading policies on green total factor productivity will be improved by higher carbon emission trading prices and a more active carbon emission trading market, thereby accelerating the green transformation process of manufacturing industry. Therefore, taking carbon emissions trading policy as a long-term strategy and improving its effectiveness is crucial to ensuring the green and sustainable development of China’s manufacturing industry.

How does internet development promote urban green innovation efficiency? Evidence from China

In recent years, the widespread application of the internet has become an important engine driving urban innovation and green transformation in China. Based on panel data from China's 285 prefecture-level cities from 2003 to 2018, this study used the super-epsilon-based measure (EBM)-undesirable model to evaluate urban green innovation efficiency (GIE). The dynamic spatial Durbin model (SDM), mediating effect model, threshold model, and difference in differences (DID) method were then used to investigate the spatial spillover effect, transmission mechanism, nonlinear relationship, and policy shock effect of internet development on urban GIE, respectively. Several key results were obtained. (1) Internet development can significantly promote urban GIE in China directly and indirectly by means of promoting producer services agglomeration, driving financial development, and reducing resource dependence. (2) There was a nonlinear relationship between internet development and urban GIE under different levels of producer services agglomeration, financial development and resource dependence. (3) Notably, when heterogeneity in geographical locations, infrastructure levels and innovation capabilities was considered, developed eastern regions and cities with better traditional infrastructure and higher innovation capacities enjoyed a more noticeable effect from internet development on GIE. (4) The “Broadband China” pilot policy evaluation, which was processed by the continuous DID method, further confirmed the promotional effect of internet development on urban GIE. These findings will help policy-makers better understand the relationship between internet development and urban GIE, thus the government should steadfastly continue to enhance information infrastructure, accelerate the deep integration of traditional industries with the internet, and formulate targeted policies under the regional differences, so as to promote urban technological innovation and green development in China.

Industrial Innovation on the Green Transformation of Manufacturing Commerce

The manufacturing industry is the foundation and pillar of the national economy. With the background of China’s economic development entering a new era and fully implementing the innovation-driven development strategy, the manufacturing sector’s level of green transformation has been realized as one of the critical indicators of China’s economic development. Technology innovation-driven green manufacturing industry transformation is a crucial strategy to achieve high-quality economic development and boost global competitiveness in the context of a new round of technological revolution and industrial reform closely entwined with China's economic transformation and development. Based on this, we take the green transformation of China’s manufacturing industry as the theme, focus on industries, regions, and strategic industries, and explore the impact and spatial linkage effect of technological innovation on the green transformation of the manufacturing industry. Based on the research perspective of manufacturing industry development heterogeneity, we construct the slack based measure - Undesirable-Malmquist-Tobit comprehensive evaluation method and put forward the driving role and impact of technological innovation on the green transformation of the manufacturing industry. The manufacturing industry is categorized into three categories based on the level of pollution, such as clean industry, medium pollution industry and heavy pollution industry. It is found that the green development efficiency of the clean manufacturing industry is the highest, followed by the heavy pollution industry, and the efficiency of the medium pollution industry is the lowest.