Directed Technological Change: Evidence from Cleaner Production Audit in China


This paper tests whether environmental regulation could induce firms' directed innovation towards environmental related technologies, using a panel dataset of Chinese listed firms during the 2000-2016 period. We use the mandatory participation in the Cleaner Production Audit (CPA) program enforced by the central government of China as a quasi-natural experiment. Employing a difference-in-differences (DID) approach, we find that the CPA not only contributes to environmental innovation but also redirects technical changes from non-environmental areas toward environmental technological fields.

Working Paper
Zhenxuan Wang
Zhenxuan Wang
Ph.D. Candidate

My research interests lie at the intersection of environmental and energy economics, climate policy, and industrial organization.