The heterogeneous impact of green public procurement on corporate green innovation

Abstract

Effectively strengthening support for corporate green innovation and promoting green transformation has become the key to promoting coordinated economic and social development in China. As a demand-oriented innovation incentive policy, green public procurement is vital for promoting green innovation. Data from A-share listed firms (2013–2019) are analyzed to explore the impact of green public procurement on corporate green innovation including the heterogeneous effects under different environmental regulation intensity levels. The results show that green public procurement significantly promotes corporate green innovation, especially in areas with strong environmental regulation. Heterogeneity analyses at the firm, industry, and regional levels show that the promotion effect of green public procurement on corporate green innovation is more significant for non-state-owned, small-scale, and ISO 14001-certified enterprises; technology-intensive industries, and enterprises in eastern China and regions with high financial development levels. This study has implications for improving the effectiveness and accuracy of green public procurement policies.