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Climate policy uncertainty and green innovation bubbles

Author

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  • Yang, Wang
  • Bao, Kun
  • Wang, Xiaochu

Abstract

This study examines how climate policy uncertainty (CPU) affects the formation of green innovation bubbles using data from Chinese A-share listed firms spanning 2009–2023. Findings reveal that CPU has a positive effect on corporate green innovation bubbles. This relationship is mediated by managerial environmental attention and short-term research and development orientation. Heterogeneity tests indicate that the positive effect is stronger for nonstate-owned enterprises and nonpollution-intensive industries. Our findings shed new light on the correlation between CPU, managerial attention allocation, and green innovation bubbles, with implications for firms intending to promote high-quality, sustainable innovation.

Suggested Citation

  • Yang, Wang & Bao, Kun & Wang, Xiaochu, 2026. "Climate policy uncertainty and green innovation bubbles," Finance Research Letters, Elsevier, vol. 91(C).
    • Handle: RePEc:eee:finlet:v:91:y:2026:i:c:s1544612326000097
    DOI: 10.1016/j.frl.2026.109477
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    References listed on IDEAS

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