Industry 4.0 and Environmental Protection: The Catalyst Role of Public Financial Support

Abstract

This article examines the relationship between the adoption of digital technologies and the corporate commitment to environmental protection, while also exploring whether this relationship is strengthened by public financial support. Using a sample of 1,616 Spanish manufacturing firms and analyzing each technology independently, the study finds a positive and significant association between Industry 4.0 technologies and the implementation of environmental practices. Furthermore, the results highlight the mediating role of public support, since firms adopting advanced technologies and receiving direct state funding or tax incentives demonstrate higher levels of environmental investment. By disaggregating the types of technologies and distinguishing between funding mechanisms, this research provides nuanced insights into the effectiveness of public interventions in promoting sustainable production processes. The findings underscore the interplay between the public and private sectors in advancing environmental innovation, revealing the role of statism in fostering sustainability within the framework of Industry 4.0.