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Is green innovation effective in improving carbon performance? Evidence from double spillovers in Chinese new energy firms

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  • Yang, Changhui
  • Fu, Yuting
  • Yang, Jia
  • Shao, Zhen
  • Luo, Qinxiao

Abstract

New energy firms are crucial to China's energy transition and environmental sustainability, and their carbon performance has drawn growing investors’ attention. As a technology-intensive sector, green innovation plays a critical role in shaping carbon performance. Using panel data of new energy firms from 2013 to 2023, this study first employs a two-way fixed-effects panel model to examine the impact of green innovation on carbon performance. Given the potential spatial correlation between technological activities and carbon emissions, a two-way fixed-effects Spatial Durbin Model is further applied. The empirical results reveal that: (1) green innovation significantly enhances firms’ carbon performance, with both substantive and strategic innovation contributing positively; (2) this effect is pronounced in the eastern region, non-resource-based cities and non-key environmental protection cities; (3) green innovation exhibits significant negative spatial spillovers under both geographical proximity and technological similarity; and (4) carbon performance shows negative contemporaneous but positive cumulative spatial dependence.

Suggested Citation

  • Yang, Changhui & Fu, Yuting & Yang, Jia & Shao, Zhen & Luo, Qinxiao, 2026. "Is green innovation effective in improving carbon performance? Evidence from double spillovers in Chinese new energy firms," Structural Change and Economic Dynamics, Elsevier, vol. 79(C), pages 412-428.
    • Handle: RePEc:eee:streco:v:79:y:2026:i:c:p:412-428
    DOI: 10.1016/j.strueco.2026.05.017
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