Resources Science ›› 2020, Vol. 42 ›› Issue (11): 2184-2195.doi: 10.18402/resci.2020.11.11

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Impact of low-carbon subsidies and green innovation on total factor productivity in view of the threshold effect of carbon emission reduction

XIONG Aihua1(), DING Youqiang1, HU Yufeng2()   

  1. 1. School of Business Administration, Shandong University of Finance and Economics, Jinan 250014, China
    2. Tongling University, Tongling 244000, China
  • Received:2019-11-20 Revised:2020-03-24 Online:2020-11-25 Published:2021-01-25
  • Contact: HU Yufeng E-mail:xiongscxah10@sina.com;huyufenghzu@163.com

Abstract:

This study examined the effect of green innovation with low-carbon subsidy on enterprise total factor productivity (ETFP) and green total factor productivity (GTFP) when the enterprise development models shift from high carbon to low carbon. Differences of decision making between enterprise and government were taken into account, and total factor productivity was divided into ETFP without environmental factors and GTFP with environmental factors. We analyzed the panel data of listed companies in key carbon emission industries of Chinese provinces from 2006 to 2017 by the threshold effect of carbon emission reduction. The results show that: carbon emission reduction has a significant threshold effect on ETFP (GTFP) with green innovation and low-carbon subsidy, which have a positive impact on ETFP (GTFP) when the total carbon emission is low and would change when it is above a certain level. The low-carbon subsidy also has a direct positive effect on GTFP when the carbon emission intensity is in the valid median interval; otherwise, it would have an indirect positive impact on GTFP through mediating the action of ETFP. There is an S-shaped relationship between carbon emission reduction and GTFP, a U-shaped relationship between carbon emission reduction and ETFP, and a U-shaped relationship between GTFP and ETFP. Therefore, low-carbon subsidy and green innovation should be designed in accordance with the characteristics of carbon emission reduction to choose effective paths, which can provide an important reference for the coordinated growth of ETFP with GTFP.

Key words: carbon emission reduction, green innovation, low-carbon subsidy, total factor productivity, threshold effect