PhD Studentship: Green vs. Non-Green Innovation: The Role of Regulatory Policies and Market Dynamics

Project summary:

Innovation drives economic growth and sustainability, but firms’ ability to innovate depends on finances, competition, and regulation. This research examines how climate policies and financial constraints influence firms’ choices between green and non-green innovation, using theoretical models and firm-level data to assess whether environmental policies stimulate or hinder technological progress.

Subject areas: Business, Computer Science, Economics, Environmental Sciences, Finance

Start date: 1^st October 2026

Deadline: 30^th April

Duration: 36 months

Funding: Funded

Funding towards:

Home fee/international fee

Stipend -UKRI stipend rate for UK students.

Funding details: A fully funded scholarship for three years covers all university tuition fees (at the UK/home rate) and provides an annual tax-free stipend. International students are also eligible to apply. Exceptional international candidates may receive additional funding to cover the difference between the home and international tuition fees.

Number of places: 1

Number of places extra: There will be a shortlisting and interview process.

RCUK eligibility: No

Eligibility:

A minimum of a 2:1 at the Bachelor’s level (or equivalent) is required. Candidates from disciplines such as mathematics, statistics, computer science, economics, or related quantitative fields are strongly encouraged to apply. While applicants need not be Business majors, they should demonstrate a clear interest in finance or economics. A strong quantitative background—particularly in mathematical modelling, statistical analysis, or computational methods—is highly preferred, as the project requires advanced quantitative training.

For full details, see advert: https://www.strath.ac.uk/studywithus/postgraduateresearchphdopportunities/business/accountingfinance/greenvsnon-greeninnovation/ 

Study modes eligibility: Full-time

Fee Status:

• Home
• International

Project Details:

Innovation drives economic growth, enhances competitiveness, and helps address global challenges such as climate change. Firms innovate through new products, improved technologies, and environmentally friendly solutions, but their innovation capacity is influenced by financial constraints, competition, and government regulation (Hall & Lerner, 2010).

Green innovation is increasingly encouraged to reduce environmental impact, yet it remains unclear whether it complements or crowds out other types of innovation, such as technological or product development (Aghion et al., 2016; Popp, 2010). Climate policies—such as carbon pricing and international agreements like the Paris Agreement—aim to promote sustainable practices, but they may also create financial pressures that influence firms’ broader R&D investments (Dechezleprêtre et al., 2017).

Financial constraints further shape firms’ decisions on allocating resources among different innovation activities (Acemoglu et al., 2012). Understanding how competition, regulation, and financial limitations interact is therefore critical for effective innovation strategies (Porter & van der Linde, 1995).

This research examines the relationship between green and non-green innovation and how climate policies influence firms’ innovation strategies. Using theory-driven quantitative analysis, the study aims to provide insights for policymakers on promoting sustainable innovation while supporting long-term technological progress.

Primary Supervisor: Dr Hai Zhang

Additional Supervisor/s: Dr Sheng Li

Further information: Both supervisors will provide guidance on methodological and empirical aspects. The Department of Accounting and Finance, as well as the faculty, organizes various workshops and seminars. Furthermore, the department's strong connections with industry and its extensive alumni network ensure that the student will have access to practical experience and industry insights. Additionally, the student will benefit from the opportunity to attend advanced methodological training sessions. Support will be provided for the student to attend conferences, particularly in the second and third years of their PhD studies.

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