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How Does Economic Policy Uncertainty Affect Green Innovation?

Published on: Technological and Economic Development of Economy

First published: November 2022

Authors: Peng, X.-Y., Zou, X.-Y., Zhao, X.-X., & Chang, C.-P

Abstract:

This research examines the impact of economic policy uncertainty (EPU) on green innovation by using the panel fixedeffects model from 2000 to 2017 for the samples of 31 provinces in China. The general conclusion is that there existsa positive link from EPU to green innovation, and that the impact of EPU varies significantly among diferent provincesthat have diverse levels of marketization and trade openness. Specifically, provinces with higher marketization anddegrees of trade openness have witnessed stronger positive effects from EPU on green innovation, whereas thecorrelation is rather weak in regions with low levels of those two factors. Our findings serve as a research referencefor how governments may boost green innovation in the face of increasing EPU