Abstract
Improving enterprises’ green innovation ability is beneficial to realize the “win–win” of economic development and environmental protection. As the global economic situation is complex and volatile, economic policies changed frequently. Will the rising uncertainty of economic policies affect enterprises’ green innovation? Taking China’s A-share-listed companies from 2008 to 2019 as the research sample, the Baker index based on news media and network information is used to measure the uncertainty of national economic policy, and the official exchange index based on the complex network is used to measure the uncertainty of economic policy in prefecture-level cities. It is found that there is an inverted U-shaped relationship between economic policy uncertainty and firms’ green innovation capability. Moreover, the uncertainty index of national macroeconomic policy is mostly on the left side of the inverted U shape, which can promote the improvement of enterprises’ green innovation ability. However, too frequent changes in regional economic policies will inhibit enterprises’ green innovation ability. This paper further analyzes the moderating effect of financialization of investment behavior and financing constraint on the impact of economic policy uncertainty on green innovation of enterprises from the perspective of investment and financing behavior choice. It is found that the impact of economic policy uncertainty on green innovation is more obvious for firms with low financing constraints and low financialization.
Highlights
Publisher’s Note: MDPI stays neutralChina’s economy has achieved world-renowned achievements in the past 40 years, but the long-term extensive economic development model has increased the burden of the ecological environment
The results show that the primary term of EPU index is significantly positive at the level of 1%, and the second term of EPU index is significantly negative at the level of 1%, which again verifies the inverted U-shaped relationship between economic policy uncertainty and the enterprise of green innovation
This paperand examined the impact of economic policy uncertainty on green innovation
Summary
China’s economy has achieved world-renowned achievements in the past 40 years, but the long-term extensive economic development model has increased the burden of the ecological environment. In order to advance the improvement of the green innovation ability of enterprises to promote the high-quality development of the economy, governments have formulated a large number of economic regulation policies. This paper measures the impact of economic policy uncertainty on the enterprise of green innovation from national and regional levels, making the research on economic policy uncertainty more comprehensive and detailed. The research of this paper can more comprehensively study the impact of economic policy uncertainty on green innovation of enterprises, and provide theoretical basis and policy choice space for the government to clarify the regulation frequency of macroeconomic policies to stimulate enterprises’ green innovation vitality and stimulate enterprises’ green innovation investment
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