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The impact of environmental decentralization on corporate green innovation: Empirical evidence from local governments

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  • Lu, Mengyuan
  • Yi, Baozhong

Abstract

This study explores how local government environmental decentralization impacts green innovation among Shanghai and Shenzhen A-share listed companies in China. Empirical findings show that such decentralization significantly enhances corporate green innovation, primarily by increasing government environmental protection investments. Heterogeneity analysis further reveals that this effect is more pronounced in non-state-owned enterprises, highlighting the role of decentralization in fostering green innovation, especially in the private sector.

Suggested Citation

  • Lu, Mengyuan & Yi, Baozhong, 2025. "The impact of environmental decentralization on corporate green innovation: Empirical evidence from local governments," Finance Research Letters, Elsevier, vol. 83(C).
    • Handle: RePEc:eee:finlet:v:83:y:2025:i:c:s1544612325008906
    DOI: 10.1016/j.frl.2025.107631
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    References listed on IDEAS

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    1. Xiaofeng Zhang & Xuefu Sun & Yu Fu, 2025. "How Does the National Intellectual Property Strong County Program Improve County-Level Air Quality? Evidence from Chinese Counties," Sustainability, MDPI, vol. 17(20), pages 1-25, October.

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