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From harm to Hope: How green innovation alleviates environmental injustice triggered by non-green innovation

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  • Fan, Yali
  • Wang, Xiuzhong
  • Li, Zhuoran
  • Wu, Wei

Abstract

This study investigates the effects of green and non-green innovation on environmental justice, with particular attention to the unequal pollution exposure experienced by low-income and minority communities in the United States. Based on firm-level data and multiple pollution indicators, including carbon emissions, toxic releases, and localized exposure metrics. The results show that non-green innovation is positively associated with environmental degradation, increasing the pollution burden borne by marginalized groups. In contrast, green innovation is found to alleviate certain types of environmental harm, especially with respect to localized pollutants such as fine particulate matter and specific toxic substances. These findings indicate that green innovation, when appropriately directed, can contribute to reducing environmental inequalities and improving conditions in vulnerable communities. The study highlights the importance of distinguishing between types of innovation and emphasizes the role of green innovation in supporting a more equitable transition toward environmental sustainability.

Suggested Citation

  • Fan, Yali & Wang, Xiuzhong & Li, Zhuoran & Wu, Wei, 2025. "From harm to Hope: How green innovation alleviates environmental injustice triggered by non-green innovation," International Review of Economics & Finance, Elsevier, vol. 101(C).
    • Handle: RePEc:eee:reveco:v:101:y:2025:i:c:s1059056025002850
    DOI: 10.1016/j.iref.2025.104122
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