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Green innovation and SO2 emissions: Dynamic threshold effect of human capital

Author

Listed:
  • Yusen Luo
  • Qinglin Wang
  • Xingle Long
  • Zheming Yan
  • Muhammad Salman
  • Chao Wu

Abstract

Green innovation is an effective path to decrease environmental pollutions. It is of immense interest to evaluate the roles of green innovation on SO2 emissions reduction. We also investigate the static and dynamic threshold effect of human capital in the impacting paths of different innovations on SO2 emissions. The empirical results show that the design patent increases SO2 emissions while the development of utility patent can decrease SO2 emissions based on the static analysis and dynamic analysis. Both the “pollution halo” and the “pollution heaven” hypotheses of foreign direct investment (FDI) are validated in China. Moreover, green innovation positively affects SO2 emission reduction based on the System Generalized Method of Moment (SYS‐GMM) estimation. Both static and dynamic panel threshold regression results reveal that the positive effects of different innovations will become larger when human capital exceeds the corresponding threshold values. Hence, it is important to enhance green human capital.

Suggested Citation

  • Yusen Luo & Qinglin Wang & Xingle Long & Zheming Yan & Muhammad Salman & Chao Wu, 2023. "Green innovation and SO2 emissions: Dynamic threshold effect of human capital," Business Strategy and the Environment, Wiley Blackwell, vol. 32(1), pages 499-515, January.
    • Handle: RePEc:bla:bstrat:v:32:y:2023:i:1:p:499-515
    DOI: 10.1002/bse.3157
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