Research On The Impact Of Low-carbon City Pilot Policy On Corporate Innovation

Climate change is one of the most important issues in recent years.The latest strategic deployment of China’s carbon peak and carbon neutrality by the 20 th Party Congress shows that China is more determined and confident in its "double carbon" goal.Since 2010,China has carried out three batches of87 pilot low-carbon cities,and the green and low-carbon development of cities has not only become an important way to promote China’s low-carbon development and achieve the "double carbon" target,but also cannot be separated from innovation to provide fundamental power.Based on the economic data and patent data of A-share listed corporations in Shanghai and Shenzhen during 2007-2020,this paper investigates whether the low-carbon city pilot policy can promote the improvement of corporate innovation and conducts a robustness test based on the quasi-natural experiment of low-carbon city pilot policy.After that,we introduce the financing constraint indicator to investigate whether alleviating the financing constraint has a positive moderating effect on the low-carbon city pilot policy and corporate innovation and conduct a robustness test.Finally,heterogeneity is discussed according to the industry and ownership nature of corporations.Based on the above analysis,the study concludes that,first,low-carbon city pilot policies can promote corporate innovation and have a significant positive impact on both substantive and strategic innovation of corporations.Second,alleviating financing constraints has a positive moderating effect on low-carbon city pilot policy and corporate innovation,specifically,corporations with low financing constraints are more likely to enhance their innovation levels after the implementation of low-carbon city pilot policy,both at the aggregate level and at the substantive and strategic levels.Third,the positive effect of the low-carbon city pilot policy on corporate innovation responds differently to heterogeneous characteristics such as the industry to which the corporate belongs and the nature of ownership.Specifically,after the implementation of the low-carbon city pilot policy,when faced with low financing constraints,corporations in heavy-polluting industries prefer to engage in substantive innovation compared to those in non-heavy-polluting industries,and non-state corporations prefer to engage in substantive innovation compared to state corporations.According to the conclusion,corresponding countermeasures are proposed: First,in terms of pilot policy for low-carbon cities,continue to optimize and scientifically design,and carry out continuous dynamic tracking and adjustment,effective supervision and scientific guidance,so as to achieve effective and long-term emission reduction by adapting to local conditions and classifying policies.Second,fully consider the heterogeneous characteristics of corporations,improve the pollution constraint mechanism and establish a reasonable and flexible innovation incentive mechanism,and strive to narrow the gap between corporations in terms of resources and information and other channels to provide a fair and clean business environment.Third,in terms of easing financing constraints,it is necessary to build multi-level financing models,improve financial services,improve the environmental information disclosure system,and encourage the development of financial intermediary platforms.