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The power of storytelling: How green narratives shape urban green innovation

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  • Chen, Yajing
  • Xu, Gaoxiang
  • Shan, Yutian
  • Wei, Yushan
  • Hu, Saiquan
  • She, Jie

Abstract

Promoting green innovation is strategically essential for sustainable development, requiring enhanced expected returns among innovation actors. As economic expectations are shaped by narratives, government-disseminated green narratives may serve as powerful policy levers for advancing green innovation. This study employs large language models and LDA topic modeling to extract green narrative-related variables from Chinese provincial Party newspapers, combining these measures with panel data from 288 Chinese cities spanning 2011–2022 to examine how green narratives influence urban green innovation and through what mechanisms. The findings reveal that green narrative exposure significantly promotes urban green innovation through two pathways: facilitating green finance development and enhancing public environmental concern. Both the economic relevance of narrative topics and the narrativity of formats positively moderate this relationship. Further analyses confirm that narrative effects extend to firm-level green innovation quality measured by patent citations. This study demonstrates narratives as effective policy instruments for green innovation, extends green narrative research from individual to regional outcomes, and provides insights for leveraging narratives to promote substantive technological progress.

Suggested Citation

  • Chen, Yajing & Xu, Gaoxiang & Shan, Yutian & Wei, Yushan & Hu, Saiquan & She, Jie, 2026. "The power of storytelling: How green narratives shape urban green innovation," Energy Economics, Elsevier, vol. 154(C).
    • Handle: RePEc:eee:eneeco:v:154:y:2026:i:c:s0140988325009521
    DOI: 10.1016/j.eneco.2025.109122
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