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In substance, the ESER policy is a form of environmental regulations, so this paper is mainly closely related to the literature on environmental regulation and UGTI. In general, the existing environmental regulation literature has comprehensively analyzed the relationship between environmental regulation and green innovation at the national10, provincial11, prefecture-level city12, industrial13, and enterprise levels14, respectively. However, on the relationship between environmental regulation and UGTI, the literature has not formed a unified view.
From the above reviews, we can conclude that while the literature has more thoroughly investigated the causal relationship between environmental regulation and UGTI, it has not yet come to a consensus. A small number of recent studies have concentrated on the effects of the ESER policy, but even fewer studies particularly look at the effects of the ESER policy on UGTI. In an effort to further research in adjacent domains, we strive to view this as a significant development.
After reviewing the literature and considering the background of the ESER policy, we believe that the policy can promote UGTI through two channels: fiscal effect and structural effect.
On the other hand, government R&D subsidies have an impact on green technology innovation, which has been confirmed by many studies. Government R&D expenditures can reduce innovation costs and risks for firms, provide the necessary policy subsidies for innovation activities with long investment cycles, and increase the incentives for green innovation in high energy-consuming firms. Qi et al.43 find that government subsidies and R&D investments improve energy transition performance as well as promote green technology innovation.
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