IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v17y2025i14p6398-d1700440.html
   My bibliography  Save this article

Unveiling the Dual Mechanisms of Public Environmental Concern on Green Innovation Quality: The Interplay Between External Pressure and Internal Motivation

Author

Listed:
  • Guomin Song

    (School of Accounting, Shandong Women’s University, Jinan 250300, China)

  • Fengyan Wang

    (School of Accounting, Shandong Women’s University, Jinan 250300, China)

Abstract

Numerous studies have examined how environmental restrictions affect innovation behavior; however, there has not been enough research focused on how public environmental concerns affect green innovation. This paper utilizes panel data of 4607 Chinese A-share listed companies (29,877 firm-year observations) over the period of 2011–2022 and constructs a dual fixed-effects model to investigate the impact of public environmental concern (PEC) on green innovation quality. Furthermore, we explore the mechanisms underlying this influence through the lenses of external pressure and internal motivation, and the moderating effect of digital transformation. The findings reveal the following: (1) Public concern about environmental issues is positively correlated with the green innovation quality. For every 1% increase in PEC, the companies’ green innovation quality will increase by 0.013%. (2) PEC forces firms to improve the green innovation quality through pressure from institutional investors, while pushing firms to boost the green innovation quality by stimulating ESG performance. (3) Digital transformation reinforces the impact of PEC on the green innovation quality. (4) PEC is more sensitive to the impact of green innovation quality in high-tech and non-heavy-polluting companies, and the enhancement effect is more pronounced in the eastern and western districts. Besides expanding the insights into the factors influencing the green innovation quality, this study also gives pragmatic guidance for governments and companies to enhance the green innovation quality, address environmental challenges, and achieve sustainable development.

Suggested Citation

  • Guomin Song & Fengyan Wang, 2025. "Unveiling the Dual Mechanisms of Public Environmental Concern on Green Innovation Quality: The Interplay Between External Pressure and Internal Motivation," Sustainability, MDPI, vol. 17(14), pages 1-27, July.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:14:p:6398-:d:1700440
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/17/14/6398/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/17/14/6398/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Meng-Meng Geng & Ling-Yun He, 2021. "Environmental Regulation, Environmental Awareness and Environmental Governance Satisfaction," Sustainability, MDPI, vol. 13(7), pages 1-17, April.
    2. Wang, Yun & Sun, Xiaohua & Guo, Xu, 2019. "Environmental regulation and green productivity growth: Empirical evidence on the Porter Hypothesis from OECD industrial sectors," Energy Policy, Elsevier, vol. 132(C), pages 611-619.
    3. Zhen Yang & Dongwei Su & Shulin Xu & Xu Han, 2024. "Institutional investors and corporate green innovation: Evidence from China," Pacific Economic Review, Wiley Blackwell, vol. 29(2), pages 230-266, May.
    4. Yiguo Chen & Peng Luo & Tsangyao Chang, 2024. "Testing the Effectiveness of Government Investments in Environmental Governance: Evidence from China," Sustainability, MDPI, vol. 16(14), pages 1-18, July.
    5. Liu, Menghe & Li, Yuxiao, 2022. "Environmental regulation and green innovation: Evidence from China's carbon emissions trading policy," Finance Research Letters, Elsevier, vol. 48(C).
    6. Gu, Yan & Ho, Kung-Cheng & Yan, Cheng & Gozgor, Giray, 2021. "Public environmental concern, CEO turnover, and green investment: Evidence from a quasi-natural experiment in China," Energy Economics, Elsevier, vol. 100(C).
    7. Liao, Xianchun & Shi, Xunpeng (Roc), 2018. "Public appeal, environmental regulation and green investment: Evidence from China," Energy Policy, Elsevier, vol. 119(C), pages 554-562.
    8. Mingfeng Tang & Grace Walsh & Daniel Lerner & Markus A. Fitza & Qiaohua Li, 2018. "Green Innovation, Managerial Concern and Firm Performance: An Empirical Study," Business Strategy and the Environment, Wiley Blackwell, vol. 27(1), pages 39-51, January.
    9. A. Lindgreen & Y.T. Xu & F. Maon & J. Wilcock, 2012. "Corporate social responsibility brand leadership: A multiple case study," Post-Print hal-00800278, HAL.
    10. Lanlan Li & Jiatian Zhang & Yu Bai & Ranran Yang, 2024. "Public environmental concern and enterprise environmental protection investment: from the perspective of enterprise life cycle," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(6), pages 15031-15065, June.
    11. Zhao, Li & Zhang, Ling & Sun, Jianxin & He, Pengfei, 2022. "Can public participation constraints promote green technological innovation of Chinese enterprises? The moderating role of government environmental regulatory enforcement," Technological Forecasting and Social Change, Elsevier, vol. 174(C).
    12. Chen, Keren & Zhao, Shenghan & Jiang, Gaozhe & He, Yafeng & Li, Hui, 2025. "The green innovation effect of the digital economy," International Review of Economics & Finance, Elsevier, vol. 99(C).
    13. Wen Yu Tan & Lingjun Guo & Wenhua Wang, 2025. "Research on the relationship between environmental governance pressure and green innovation," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 27(2), pages 5255-5278, February.
    14. Caixia Song & Wenyuan Ma, 2025. "ESG and green innovation: nonlinear moderation of public attention," Palgrave Communications, Palgrave Macmillan, vol. 12(1), pages 1-14, December.
    15. Muhammad Khuram Khalil & Umaporn Muneenam, 2021. "Total Quality Management Practices and Corporate Green Performance: Does Organizational Culture Matter?," Sustainability, MDPI, vol. 13(19), pages 1-27, October.
    16. Mert Gürlek & Muharrem Tuna, 2018. "Reinforcing competitive advantage through green organizational culture and green innovation," The Service Industries Journal, Taylor & Francis Journals, vol. 38(7-8), pages 467-491, June.
    17. Tang, Maogang & Liu, Yinlin & Hu, Fengxia & Wu, Baijun, 2023. "Effect of digital transformation on enterprises' green innovation: Empirical evidence from listed companies in China," Energy Economics, Elsevier, vol. 128(C).
    18. Wen Yu Tan & Lingjun Guo & Wenhua Wang, 2025. "Correction: Research on the relationship between environmental governance pressure and green innovation," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 27(2), pages 5445-5445, February.
    19. Kang Pan & Feng He, 2022. "Does Public Environmental Attention Improve Green Investment Efficiency?—Based on the Perspective of Environmental Regulation and Environmental Responsibility," Sustainability, MDPI, vol. 14(19), pages 1-20, October.
    20. Jing Hou & Xin Li & Feiyu Chen & Bo Hou, 2024. "The Effect of Digital Economy on Rural Environmental Governance: Evidence from China," Agriculture, MDPI, vol. 14(11), pages 1-32, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Xinyue Hao & Fanglin Chen & Zhongfei Chen, 2022. "Does green innovation increase enterprise value?," Business Strategy and the Environment, Wiley Blackwell, vol. 31(3), pages 1232-1247, March.
    2. Chen, Han & Deng, Jianping & Lu, Meiting & Zhang, Pengdong & Zhang, Qihao, 2024. "Government environmental attention, credit supply and firms' green investment," Energy Economics, Elsevier, vol. 134(C).
    3. Lingxiao Zhao & Yunpeng Tang & Yan Liu, 2023. "How Does Environmental Tax Influence the Scale and Efficiency of Green Investment among China’s Heavily Polluting Enterprises?," Sustainability, MDPI, vol. 15(20), pages 1-26, October.
    4. Jinqiu He & Huiwen Su, 2022. "Digital Transformation and Green Innovation of Chinese Firms: The Moderating Role of Regulatory Pressure and International Opportunities," IJERPH, MDPI, vol. 19(20), pages 1-21, October.
    5. Lee, Chien-Chiang & Qin, Shuai & Li, Yaya, 2022. "Does industrial robot application promote green technology innovation in the manufacturing industry?," Technological Forecasting and Social Change, Elsevier, vol. 183(C).
    6. Youmeng Wu & Hao Sun & Hongliang Sun & Chi Xie, 2022. "Impact of Public Environmental Concerns on the Digital Transformation of Heavily Polluting Enterprises," IJERPH, MDPI, vol. 20(1), pages 1-19, December.
    7. Fatima Batool & Ibrahim A. Alhidary & Jhansi Rani Boda & Belal Mahmoud Alwadi & Khurshid Khudoykulov & Mohammad Haseeb, 2025. "Balancing Sustainability and Profitability: The Financial Effect of Green Innovation in Chinese High-Pollution Industries," Sustainability, MDPI, vol. 17(8), pages 1-29, April.
    8. Tian, Jinfang & Sun, Siyang & Cao, Wei & Bu, Di & Xue, Rui, 2024. "Make every dollar count: The impact of green credit regulation on corporate green investment efficiency," Energy Economics, Elsevier, vol. 130(C).
    9. Xinwei Li & Wenjuan Zeng & Mao Xu, 2022. "The Moderating Role of IT Capability on Green Innovation and Ambidexterity: Towards a Corporate Sustainable Development," Sustainability, MDPI, vol. 14(24), pages 1-20, December.
    10. Sheng Liu & Heming Liu & Xiuying Chen, 2024. "Does environmental regulation promote corporate green investment? Evidence from China’s new environmental protection law," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(5), pages 12589-12618, May.
    11. Tan, Weijie & Zhang, Zihan & Chu, Zhongzhu & Chen, Pengyu, 2024. "Unlocking green potential: The digital government-driven revolution in corporate green innovation," Economic Analysis and Policy, Elsevier, vol. 83(C), pages 60-79.
    12. Su, Chi-Wei & Yuan, Xi & Tao, Ran & Shao, Xuefeng, 2022. "Time and frequency domain connectedness analysis of the energy transformation under climate policy," Technological Forecasting and Social Change, Elsevier, vol. 184(C).
    13. Xu, Deyi & Abbas, Shah & Rafique, Kalsoom & Ali, Najabat, 2023. "The race to net-zero emissions: Can green technological innovation and environmental regulation be the potential pathway to net-zero emissions?," Technology in Society, Elsevier, vol. 75(C).
    14. Xuan, Siyuan & Song, Daqiang & You, Guomin, 2024. "Financial risk prevention and corporate green innovation: A quasi-natural experiment based on the new asset management regulation," Pacific-Basin Finance Journal, Elsevier, vol. 88(C).
    15. Du, Kerui & Cheng, Yuanyuan & Yao, Xin, 2021. "Environmental regulation, green technology innovation, and industrial structure upgrading: The road to the green transformation of Chinese cities," Energy Economics, Elsevier, vol. 98(C).
    16. Sisi Zheng & Shanyue Jin, 2023. "Can Enterprises in China Achieve Sustainable Development through Green Investment?," IJERPH, MDPI, vol. 20(3), pages 1-25, January.
    17. Ziyuan Sun & Xiao Sun & Yuting Dong, 2024. "Does negative environmental performance feedback induce substantive green innovation? The moderating roles of external regulations and internal incentive," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(4), pages 2953-2976, July.
    18. Fang, Zhenming & Kong, Xiaoran & Sensoy, Ahmet & Cui, Xin & Cheng, Feiyang, 2021. "Government’s awareness of Environmental protection and corporate green innovation: A natural experiment from the new environmental protection law in China," Economic Analysis and Policy, Elsevier, vol. 70(C), pages 294-312.
    19. Bataineh, Mohammad Jamal & Sánchez-Sellero, Pedro & Ayad, Fayssal, 2024. "The role of organizational innovation in the development of green innovations in Spanish firms," European Management Journal, Elsevier, vol. 42(4), pages 527-538.
    20. Kopyrina, Olga & Wu, Kai & Ying, Zhanyu, 2023. "Greening through central inspection: The role of legitimacy pressure and risk-taking," Pacific-Basin Finance Journal, Elsevier, vol. 77(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:17:y:2025:i:14:p:6398-:d:1700440. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.