Influence Mechanism of Smart City Pilot Policy on Enterprise Green Technology Innovation: Evidence from China

Abstract

This study employs data from publicly listed enterprises spanning the years 2008 to 2021 and uses China’s Smart City Pilot Policy (SCPP) as a quasi-natural experiment to explore its impact on driving green technological innovation within enterprises. The results reveal that the SCPP significantly fosters improvements in enterprises’ green technology innovation. The policy’s impact is particularly notable for state-owned enterprises, those in high-pollution industries, and technology-intensive enterprises located in the eastern regions of China. The SCPP facilitates green technological innovation by promoting green finance development, advancing digital transformation within enterprises, and strengthening environmental regulations. Moreover, the business environment serves as a positive moderator in enhancing the policy’s effectiveness, with favorable conditions in government, market, and legal frameworks further amplifying the policy’s positive influence on green technology innovation in enterprises.