Abstract
Based on the sample data of Shanghai and Shenzhen A-share listed companies in the heavy pollution industry from 2012 to 2021, this paper empirically examines the impact of environmental regulation on the level of green innovation of enterprises by using the frequency of environmental protection words in the work reports of prefecture-level city governments as the proxy variable of environmental regulation. This study finds that government regulation significantly improves the level of green innovation of enterprises, supporting the “Porter Hypothesis”, and the promotion effect is more significant for non-state enterprises. This study plays an important role in improving the policy effect of environmental regulation, and puts forward some policy suggestions on how to reduce environmental pollution while promoting economic growth.
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