NAVIGATING GREEN GROWTH STRATEGIES IN THE ART INDUSTRY’S SMALL BUSINESS LANDSCAPE

This study examines the factors influencing environmental investment in Small- and Medium-sized Enterprises (SMEs) within the Chinese art industry, using data from 50 listed companies between 2015 and 2021. It analyzes the effects of carbon emissions, stock prices, workforce expansion and energy expenditure on environmental investment decisions. The results show a positive correlation between carbon emissions and environmental investment, where a 1% increase leads to short-term gains of 0.18% and long-term gains of 0.34%. Stock prices also have a significant impact, with a 1% increase resulting in short-term gains of 0.43% and long-term gains of 0.67%. In contrast, workforce expansion has a negative effect, with a 1% increase causing short-term reductions of 0.07% and long-term decreases of 0.12%. Higher energy expenditure encourages environmental investment, leading to short-term gains of 0.25% and long-term gains of 0.48%. Based on these findings, the study proposes practical policies for promoting green growth in China’s art industry SMEs, such as tax credits or subsidies for eco-friendly practices and technologies, and programs to raise awareness and provide training on sustainable practices.