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Local governments’ environmental emphasis and corporate green innovation: evidence from China

Author

Listed:
  • Yueyang Zhao

    (Jilin University
    Jilin University)

  • Jinzhou Mao

    (Jilin University)

  • Yueshan Li

    (Jilin University)

Abstract

To study the effect of green industrial policies comprehensively, this paper takes uses a sample of Chinese Shanghai and Shenzhen A-share listed companies from 2008 to 2019 to study the impact of local governments’ environmental emphasis on corporate green innovation. The results show that local governments’ environmental emphasis has a significant positive impact on the number of green patents of enterprises. More importantly, local governments’ environmental attention mainly plays its role by improving the environmental protection awareness of corporate executives and increasing environmental protection subsidies. In addition, the effect of local governments’ environmental emphasis is more pronounced in state-owned enterprises, firms with low financing constraints, and heavily polluting firms. Further research finds that local governments’ environmental emphasis has a significant role in promoting the number of green invention patents and non-invention patents, but only green invention patents enhance the intrinsic value of enterprises.

Suggested Citation

  • Yueyang Zhao & Jinzhou Mao & Yueshan Li, 2022. "Local governments’ environmental emphasis and corporate green innovation: evidence from China," Economic Change and Restructuring, Springer, vol. 55(4), pages 2577-2603, November.
    • Handle: RePEc:kap:ecopln:v:55:y:2022:i:4:d:10.1007_s10644-022-09406-3
    DOI: 10.1007/s10644-022-09406-3
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    Cited by:

    1. Jinyu Chen & Yan Yang & Ran Liu & Yuan Geng & Xiaohang Ren, 2023. "Green bond issuance and corporate ESG performance: the perspective of internal attention and external supervision," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-12, December.
    2. Yueyang Zhao & Jinzhou Mao, 2023. "Mixed ownership reforms and the transparency of nonstate‐owned enterprises: Evidence from China," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(1), pages 271-284, January.
    3. Ren, Xiaohang & Xia, Xixia & Taghizadeh-Hesary, Farhad, 2023. "Uncertainty of uncertainty and corporate green innovation—Evidence from China," Economic Analysis and Policy, Elsevier, vol. 78(C), pages 634-647.
    4. Zhao, Yueyang & Mao, Jinzhou, 2022. "Energy effects of non-energy policies: Minimum wage standard and enterprise energy efficiency in China," Resources Policy, Elsevier, vol. 79(C).

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    More about this item

    Keywords

    Environmental importance; Green innovation; Environmental awareness; Environmental subsidies;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • L53 - Industrial Organization - - Regulation and Industrial Policy - - - Enterprise Policy
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation

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