Economic Benefit Analysis of Green Technology Innovation in Manufacturing Industry under Carbon Neutrality Target

Dongfang Qin^1,2*Weixian Xue¹

• ¹Xi'an University of Technology, Xi'an, China
• ²Xi'an Mingde Institute of Technology, Northwestern Polytechnical University, Xi'an, China

This study examines the economic benefits of green technology innovation in the manufacturing industry within the context of carbon neutrality goals. A mixed-methods approach, combining qualitative insights from case studies and expert interviews with quantitative analysis using Data Envelopment Analysis (DEA), is employed to assess the impact of green technologies on firms' productivity, cost efficiency, market competitiveness, and environmental performance. The results demonstrate that the adoption of green technologies significantly enhances both operational efficiency and environmental outcomes. Specifically, manufacturing firms adopting green innovations experienced an average increase in efficiency by 14.6%, a reduction in operational costs by 8.3%, and a 12.7% improvement in market competitiveness, as measured by market share and customer satisfaction. Moreover, these firms achieved a 22.4% average reduction in carbon emissions, supporting their contribution to global sustainability targets. These findings not only substantiate the theoretical arguments of Porter's Hypothesis, which posits that environmental innovation can create competitive advantages, but also highlight the practical challenges smaller firms face in adopting green technologies, particularly due to high initial costs and limited technical capacity. The paper concludes with policy recommendations aimed at fostering green innovation in the manufacturing sector, emphasizing the need for financial incentives and support mechanisms to assist smaller firms in overcoming adoption barriers. The findings provide important insights for policymakers and industry leaders striving to meet carbon neutrality objectives while enhancing economic performance.