Environmental Tax, SME Financing Constraint and Innovation. Evidence from OECD Countries

Tingbani, Ishmael and Salia, Samuel and Hussain, Javed G. and Alhassan, Yahaya (2021) Environmental Tax, SME Financing Constraint and Innovation. Evidence from OECD Countries. IEEE Transactions on Engineering Management. ISSN 0018-9391

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Official URL: https://ieeexplore.ieee.org/document/9580749

Abstract

This paper examines the impact of environmental tax on SME innovation and how SME financing constraint moderates this relationship. Given the paucity of research on the implications of financing constraints on SMEs’ green innovative activities, the study adopts cross-country panel data to investigate the impact of environmental tax on SME’s innovative activities across 24 OECD countries for the period 2000-2019. Results from our study indicate that an increase in environmental tax leads to a decrease in SME innovation. Further, we also find that financing constraint positively moderates the relationship between environmental tax and SME innovation. Our findings shed new light on the theoretical and practical implications of financing constraints on SMEs’ green innovative activities.

Item Type:	Article
Identification Number:	10.1109/TEM.2021.3110812
Dates:	Date Event 4 September 2021 Accepted 19 October 2021 Published Online
Uncontrolled Keywords:	Finance, Technological innovation, Economics, Instruments, Costs, Green products, Economic indicators
Subjects:	CAH17 - business and management > CAH17-01 - business and management > CAH17-01-02 - business studies CAH17 - business and management > CAH17-01 - business and management > CAH17-01-07 - finance
Divisions:	Faculty of Business, Law and Social Sciences > College of Accountancy, Finance and Economics Faculty of Business, Law and Social Sciences > College of Business, Digital Transformation & Entrepreneurship
Depositing User:	Javed Hussain
Date Deposited:	27 Oct 2021 10:42
Last Modified:	20 Jun 2024 12:05
URI:	https://www.open-access.bcu.ac.uk/id/eprint/12159