Unlocking sustainable growth

How ESG and innovation reshape China’s energy-intensive manufacturing—An extended CDM model approach

Bibliographic Data

ID7397192
AuthorsBaolong Yuan (0000-0002-8094-0486), Sijia Ma (0000-0002-3978-4346), Kun Zhang (0000-0003-1636-5373)
Year2025
Volume9
Pages100666-100666
Publication date2025-05-14
Open AccessYes
TypeARTICLE
VenueSustainable Futures (JOURNAL)
Journal identifiersISSN: 2666-1888
PublisherElsevier BV (PUBLISHER)
DOI10.1016/j.sftr.2025.100666
OpenAlexW4410378988
LanguageEN
References cited105

This study employs an extended CDM (Crépon-Duguet-Mairesse) model to construct a framework for examining the impact of environmental, social, and governance (ESG) practices on corporate total factor productivity (TFP), with a particular focus on the innovation process and “third-order” empowerment. Drawing on data from listed energy-intensive manufacturing firms in China from 2015 to 2020, our findings reveal that: (1) ESG practices play a significant role in stimulating R&D investment, with green finance further reinforcing this effect. (2) Corporate R&D investment exerts a positive impact on both radical and incremental innovation. Additionally, regional human capital combined with R&D investment synergistically enhances the innovation output. (3) Both radical and incremental innovations contribute positively to corporate TFP. However, the expected positive moderating effect of digital transformation on the relationship between innovation output and TFP is not statistically significant. These findings provide valuable insights for improving corporate TFP by strengthening ESG implementation

Business · China · Economics · Geography · Industrial organization · Production (economics · Renewable energy · Sustainable development · Sustainable Energy · Sustainable Growth Rate · Sustainable production · Economic Growth and Productivity · Energy, Environment, Economic Growth · Engineering · Innovation Policy and RD · Ecology · Finance

Tools

Open DOIOpen Access