Regional carbon emission pressure and corporate green innovation

Yongji Zhang, Minghui Lan*, Yapu Zhao, Zhi Su, Yu Hao, Heran Du

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

10 Citations (Scopus)

Abstract

China's ambitious endeavor to curtail carbon emissions has led to heightened governmental attention on addressing the issue of excessive carbon emissions. As governmental tolerance for such emissions diminishes, governments promote and support more proactive emission reduction methods of green innovation in enterprises. This study analyzes panel data from Chinese-listed businesses to explore the correlation between regional carbon emission pressure and green innovation. Our findings indicate a positive relationship between carbon emission pressure and enterprises' engagement in green innovation initiatives. Governmentenvironmental attention, punitive regulations, and incentive subsidies are the main channels. Market policies, including carbon emission trading and green credit policies, potentially impact the interplay between carbon emission pressure and green innovation. Moreover, our heterogeneity analysis underscores that enterprises facing looser financing constraints, exhibiting more social responsibility initiatives, and operating within polluting industries tend to experience a more pronounced positive impact than their counterparts in other sectors.

Original languageEnglish
Article number122625
JournalApplied Energy
Volume360
DOIs
Publication statusPublished - 15 Apr 2024

Keywords

  • Carbon emission pressure
  • Covernment incentive subsidies
  • Environmental attenton
  • Green innovation
  • Punitive regulation

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