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Does environmental information disclosure affect green innovation?

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  • Lu, Zhiqiang
  • Li, Hongyu

Abstract

Environmental information disclosure (EID) is a critical element of corporate disclosure that can demonstrate companies’ dedication to environmental protection to stakeholders who are concerned about the environment. Using green patent data of Chinese listed companies, this paper tests the influence of EID on green innovation (GI) and the regulating role of digital transformation. Results show that EID has a positive impact on GI and that the relationship is significantly influenced by corporate digital transformation. Additionally, the moderating effect of digital transformation is more significant with high information opacity, financing dependence, and social attention. This study contributes to the literature on the perspective of firm-level voluntary information disclosure and proposes a more comprehensive logical analysis framework for the effect of EID on GI. Moreover, digital transformation can assist companies in identifying and disclosing environmental information more accurately, which increases the effectiveness of EID. Lastly, the findings emphasize the policy implications of utilizing digital technology for EID and the vital role of government regulation and guidance in EID.

Suggested Citation

  • Lu, Zhiqiang & Li, Hongyu, 2023. "Does environmental information disclosure affect green innovation?," Economic Analysis and Policy, Elsevier, vol. 80(C), pages 47-59.
    • Handle: RePEc:eee:ecanpo:v:80:y:2023:i:c:p:47-59
    DOI: 10.1016/j.eap.2023.07.011
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    More about this item

    Keywords

    Environmental information disclosure (EID); Green innovation (GI); Digital transformation; Information asymmetry;
    All these keywords.

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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