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Intergenerational externalities and corporate green innovation

Author

Listed:
  • Wenbing Jiang
  • Xuejun Wang
  • Lei Du

Abstract

Based on the intergenerational externalities views, this paper builds the link between ecological damage claim policy and firms' green innovation. Making polluters bear intergenerational responsibility is considered to be a key move to break intergenerational externalities and effectively address the problem of multiple environmental failures. The ecological damage claim policy makes the environmental rights of future generations being remedied through judicial procedures, and can clarify pollution responsibility to push firms to choose long‐term environmental solutions for achieving intergenerational sustainability and maintaining intergenerational justice. Using longitudinal data (2012–2017) covering 4992 Chinese firm‐year observations in high‐pollution industries, we find that ecological damage claim policy promotes firms' green innovation. This positive effect is stronger when the firm is located in a region with stronger environmental enforcement and more environmental organizations.

Suggested Citation

  • Wenbing Jiang & Xuejun Wang & Lei Du, 2023. "Intergenerational externalities and corporate green innovation," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(4), pages 2212-2221, August.
    • Handle: RePEc:wly:sustdv:v:31:y:2023:i:4:p:2212-2221
    DOI: 10.1002/sd.2501
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    Cited by:

    1. Natasya Ghinna & Koji Kotani, 2025. "Future generations and intergenerational sustainability towards SDGs: A comprehensive review for behavioral and institutional decision making," Working Papers SDES-2025-13, Kochi University of Technology, School of Economics and Management, revised Dec 2025.
    2. Mi Sook Lee, 2024. "The relationship between green innovation and sustainable growth in Korean companies: Moderated mediation effect of ESG score by industry," Sustainable Development, John Wiley & Sons, Ltd., vol. 32(3), pages 2797-2810, June.
    3. Meiying Huang & Shi Chen & Pengfei Cheng, 2025. "Green path without waste: zero-waste city pilot construction and corporate green innovation," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 12(1), pages 1-15, December.
    4. Kai Chang & Shuqi Wei & Guangxi Wei, 2025. "Impact of Green Transformation on Corporate Sustainable Development Performance in China," SAGE Open, , vol. 15(4), pages 21582440251, December.

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