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

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....

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Main Authors: Baolong Yuan, Sijia Ma, Kun Zhang
Format: Article
Language:English
Published: Elsevier 2025-06-01
Series:Sustainable Futures
Subjects:
Online Access:http://www.sciencedirect.com/science/article/pii/S2666188825002345
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author Baolong Yuan
Sijia Ma
Kun Zhang
author_facet Baolong Yuan
Sijia Ma
Kun Zhang
author_sort Baolong Yuan
collection DOAJ
description 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.
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institution Kabale University
issn 2666-1888
language English
publishDate 2025-06-01
publisher Elsevier
record_format Article
series Sustainable Futures
spelling doaj-art-e4ab87cac7a349d59e05523b8d2a5ed02025-08-20T03:45:14ZengElsevierSustainable Futures2666-18882025-06-01910066610.1016/j.sftr.2025.100666Unlocking sustainable growth: How ESG and innovation reshape China’s energy-intensive manufacturing—An extended CDM model approachBaolong Yuan0Sijia Ma1Kun Zhang2School of Economics and Management, Central South University of Forestry and Technology, Changsha 410004, PR ChinaSchool of Economics and Management, Central South University of Forestry and Technology, Changsha 410004, PR ChinaCorresponding author.; School of Economics and Management, Central South University of Forestry and Technology, Changsha 410004, PR ChinaThis 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.http://www.sciencedirect.com/science/article/pii/S2666188825002345D22L21M14O30Q55
spellingShingle Baolong Yuan
Sijia Ma
Kun Zhang
Unlocking sustainable growth: How ESG and innovation reshape China’s energy-intensive manufacturing—An extended CDM model approach
Sustainable Futures
D22
L21
M14
O30
Q55
title Unlocking sustainable growth: How ESG and innovation reshape China’s energy-intensive manufacturing—An extended CDM model approach
title_full Unlocking sustainable growth: How ESG and innovation reshape China’s energy-intensive manufacturing—An extended CDM model approach
title_fullStr Unlocking sustainable growth: How ESG and innovation reshape China’s energy-intensive manufacturing—An extended CDM model approach
title_full_unstemmed Unlocking sustainable growth: How ESG and innovation reshape China’s energy-intensive manufacturing—An extended CDM model approach
title_short Unlocking sustainable growth: How ESG and innovation reshape China’s energy-intensive manufacturing—An extended CDM model approach
title_sort unlocking sustainable growth how esg and innovation reshape china s energy intensive manufacturing an extended cdm model approach
topic D22
L21
M14
O30
Q55
url http://www.sciencedirect.com/science/article/pii/S2666188825002345
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AT sijiama unlockingsustainablegrowthhowesgandinnovationreshapechinasenergyintensivemanufacturinganextendedcdmmodelapproach
AT kunzhang unlockingsustainablegrowthhowesgandinnovationreshapechinasenergyintensivemanufacturinganextendedcdmmodelapproach