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Climate change and innovation: Exploring the mediating role of gender equality at the firm level

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  • Abdulla, Eman
  • Lim, King Yoong
  • Morris, Diego
  • Saliba, Faten

Abstract

Based on an empirical evaluation of hypotheses derived from a novel theoretical framework linking environmental policies, gender equality and innovation, using globally comparable firm-level data we find that: (i) there is a positive correlation between firm-level gender equality and innovation; and (ii) the direct relationship between greenhouse gas emissions and innovation is ambiguous, varying across different measures. However, stricter environmental policies consistently promote innovation, and this effect extends beyond the conventional Porter Hypothesis. Both the depth (measured by policy stringency) and breadth (quantified through resource-based environmental policies) significantly enhance organizational gender equality, which in turn fosters innovation. While this relationship is less pronounced in developing countries, we find a statistically significant environment–gender nexus that positively moderates the link between environmental policy and innovation. This finding aligns with the idea that resource-focused policies play a key role in triggering an additional induced innovation channel linked to women’s empowerment.

Suggested Citation

  • Abdulla, Eman & Lim, King Yoong & Morris, Diego & Saliba, Faten, 2025. "Climate change and innovation: Exploring the mediating role of gender equality at the firm level," Energy Economics, Elsevier, vol. 148(C).
    • Handle: RePEc:eee:eneeco:v:148:y:2025:i:c:s0140988325004372
    DOI: 10.1016/j.eneco.2025.108610
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    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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