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Environmental information disclosure and firms’ green innovation: Evidence from China

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  • Ding, Jinxiu
  • Lu, Zhe
  • Yu, Chin-Hsien

Abstract

Environmental information regulation has attracted growing attention from policymakers and scholars. We conduct a quasi-natural experiment based on the pollution information transparency index (PITI) assessment for Chinese cities in 2008, applying the difference-in-difference-in-differences estimation to identify the impact of PITI disclosure on firms’ green innovation. Our results demonstrate that environmental information disclosure increases the green patenting activity of high-polluting firms. This positive effect is greater for firms with state ownership, non-foreign ownership, high-tech certification experience, and large firm size. We also find that increased corporate social responsibility following PITI disclosure is the main driving force for increased green patenting.

Suggested Citation

  • Ding, Jinxiu & Lu, Zhe & Yu, Chin-Hsien, 2022. "Environmental information disclosure and firms’ green innovation: Evidence from China," International Review of Economics & Finance, Elsevier, vol. 81(C), pages 147-159.
    • Handle: RePEc:eee:reveco:v:81:y:2022:i:c:p:147-159
    DOI: 10.1016/j.iref.2022.05.007
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    Cited by:

    1. Shiliang Hu & Wenhao Dong & Yongchun Huang, 2023. "Analysts’ Green Coverage and Corporate Green Innovation in China: The Moderating Effect of Corporate Environmental Information Disclosure," Sustainability, MDPI, vol. 15(7), pages 1-22, March.
    2. Xu Luo & Mengke Yu & Yongsheng Jin, 2023. "The Impact of Economic Policy Uncertainty on Enterprise Green Innovation: A Study on the Moderating Effect of Carbon Information Disclosure," Sustainability, MDPI, vol. 15(6), pages 1-17, March.
    3. Yu Liu & Huiping Ding & Biao Sun, 2022. "Does Green Credit Policy Promote or Inhibit Firms’ Green Innovation in China? Moderating Effect of Environmental Information Disclosure," Sustainability, MDPI, vol. 15(1), pages 1-17, December.
    4. Yueping Du & Huanhuan Wang, 2022. "Green Innovation Sustainability: How Green Market Orientation and Absorptive Capacity Matter?," Sustainability, MDPI, vol. 14(13), pages 1-20, July.

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