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Media coverage, Environment Protection Law and environmental research and development: evidence from the Chinese-listed firms

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Listed:
  • Wunhong Su

    (Hangzhou Dianzi University)

  • Chun Guo

    (Shantou University)

  • Xiaobao Song

    (Shantou University)

Abstract

Environmental research and development (R&D) is an effective means to coordinate firms’ sustainable development and environmental protection. This study investigates the impact of media coverage on environmental R&D with the Environmental Protection Law’s exogenous shock in 2015 in China. The results show that both media coverage and the Environmental Protection Law significantly promote firms’ environmental R&D. Moreover, the Environmental Protection Law strengthens the positive effect of media coverage on firms’ environmental R&D, and the strengthening effect is more significant for firms with low internal control quality and in high-competition industry. Further researches suggest that environmental R&D fully mediates the relationship between media coverage and environmental technology innovation, while the Environment Protection Law has no significant effect on environmental technology innovation. The results demonstrate external supervision or regulations are conducive to environmental R&D, which conforms to Porter Hypothesis. This study has certain enlightening significance to firms’ environmental R&D, environmental technology innovation, and sustainable development in developing economies.

Suggested Citation

  • Wunhong Su & Chun Guo & Xiaobao Song, 2022. "Media coverage, Environment Protection Law and environmental research and development: evidence from the Chinese-listed firms," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(5), pages 6953-6983, May.
    • Handle: RePEc:spr:endesu:v:24:y:2022:i:5:d:10.1007_s10668-021-01735-z
    DOI: 10.1007/s10668-021-01735-z
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    4. Zhang, Bingbing & Wang, Yuan & Sun, Chuanwang, 2023. "Urban environmental legislation and corporate environmental performance: End governance or process control?," Energy Economics, Elsevier, vol. 118(C).

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    More about this item

    Keywords

    Media coverage; Environmental research & development; Environment Protection Law; Environmental technology innovation; Internal control; Industry competitiveness;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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