Green Innovation Research Articles

Thriving through innovation: Boosting green tech performance in China's new energy sector

In response to the challenges of sustainable development, green technological innovation (GTI) is considered as a key driver of high-quality growth. However, current research often lacks a comprehensive assessment of GTI's multidimensional performance and rarely explores improvement pathways from a structural perspective. This study evaluates the GTI performance of China's new energy sector using data from 62 listed companies between 2015 and 2021, employing a Back Propagation (BP) neural network model optimized by a genetic algorithm. Additionally, it explores performance enhancement paths through fuzzy set Qualitative Comparative Analysis (fsQCA). The findings indicate that: Industrial structure and human resource levels significantly boost GTI performance in the new energy sector; Optimizing and upgrading industrial structures plays a crucial role in GTI improvement; High Research and development (R&D) investment and human capital strengthen market competitiveness, leading to higher GTI levels; The development of GTI in the new energy sector exhibited a general upward trend, with notable differences across sub-industries and regions from 2015 to 2021. Based on these results, this study recommends differentiated industry support, targeted regional policies, and enhanced talent cultivation to improve GTI performance in China's emerging energy industry.

Hybrid product branding strategies for brand value creation – combining and comparing green product innovations, limited editions and co-branding

Hybrid product branding strategies for brand value creation – combining and comparing green product innovations, limited editions and co-branding

Research trends in innovation ecosystem and circular economy

Understanding innovation ecosystems and the circular economy is crucial for systemic change in business and industry, fostering eco-innovation and advancing sustainable development. This study uses bibliometric analysis to uncover the research trends, patterns, and collaborations, revealing a significant gap in understanding the interactions between innovation ecosystems and the circular economy and offering potential avenues for future research that align with sustainable development. The analysis was carried out with the help of Biblioshiny and VOSviewer on the final selected documents of 2981 from the Scopus database through a search query and the SPAR-4-SLR stages of filtration. The key findings of the study are as follows: collaboration among countries involves accessing countries’ resources, knowledge, markets, and location. The study explores research trends in the innovation ecosystem and circular economy, focusing on five key clusters: the circular economy for eco-innovation and resource recovery, circular business models for fostering sustainable innovation in the bioeconomy, sustainability through renewable energy and sdgs, the sustainable business model for enhancing green innovation through entrepreneurship, and Artificial Intelligence (AI) and the circular business model in Industry 4.0. The bibliometric analysis identifies trends, research gaps, and collaboration patterns, revealing potential avenues for future exploration in industrial symbiosis, energy transition, and the system of innovation. The study analyzed only the documents available in Scopus. The exclusion of papers based on the search period, language, document type, and incomplete details are the limitations of this research and open the scope of potential future research. The findings will help existing researchers in this field as well as new researchers interested in this field by clearly understanding trends and further research scopes. The study also offers actional recommendations and practices to policymakers. Practices, and entrepreneurs for the attainment of global sustainability goals. The novelty and originality of this study rely on a thorough literature review that describes the state of the art in the innovation ecosystem and circular economy.

Fintech’s role in carbon emission efficiency: dynamic spatial analysis

Against the backdrop of digitization and global warming, fintech plays a crucial role in accelerating the growth of green finance, driving innovation in the financial industry, and catalyzing the low-carbon transformation of economic activities. This paper utilizes city panel data from 2007 to 2019 to examine the direct impact of fintech on carbon emission efficiency (CEE), the transmission channels of green technological innovation and green finance, and the spatial spillover effects, using dynamic panel models, mediation effect models, and dynamic spatial Durbin models (SDM). The study finds that: (i) Fintech significantly improves CEE, and this conclusion remains robust after accounting for potential endogeneity issues and conducting robustness tests. (ii) Mechanism analysis reveals that green finance and green technological innovation are the primary channels through which fintech influences CEE. (iii) Results from the dynamic SDM model indicate that fintech has a significant positive spatial spillover effect on CEE, with the long-term spillover effect being smaller than the short-term spillover effect. (iv) Heterogeneity analysis reveals that fintech’s improvement effect on CEE is mainly evident in eastern regions, emerging first-tier and first-tier cities, and non-resource-based cities. Our research provides new insights for policymakers on achieving China’s dual-carbon goals through the promotion of fintech development, green finance, and green technological innovation. It also aids in the coordinated development of fintech among cities and the formulation of differentiated policies, providing a theoretical foundation and empirical support for future research.

Rectifying local governments’ strategic environmental enforcement: Can refined air pollution monitoring enhance local air quality in China?

Insufficient local environmental enforcement has become a pivotal economic and political concern in China. In 2017, the Chinese central government introduced the Air Pollution Hot-Spot Grid (APHG) monitoring program. However, little is known about the consequences. This study investigates in detail how this monitoring program affects city-level air pollution by applying the difference-in-differences method. This program was responsible for a notable decrease in air pollution at the city level. This decrease was mostly the result of stronger local environmental governance, advances in green innovation, and an upgraded industrial structure. Additionally, an examination of heterogeneous treatment effects across different cities revealed that the most substantial effects were observed in large, non-resource-based, and eastern cities. Additional analysis reveals the presence of a spillover effect, whereby the adoption of this program in one city helps reduce air pollution in nearby cities. These results highlight the significance of refined air pollution monitoring for addressing imperfect local environmental enforcement.

Can “ Zero waste city” policy promote green technology? Evidence from econometrics and machine learning

The promotion of green technology innovation (GTI) is regarded as an effective way to protect the environment and achieve sustainable development. The “Zero waste city” construction pilot policy (ZWCP), is an important policy for the promotion of waste management, and the achievement of sustainable development and circular economy. The paper explores the effect of ZWCP on GTI using the difference-in-differences model and machine learning. The result shows that ZWCP significantly promotes GTI. In addition, causal forest modeling, a type of machine learning method, similarly validates this result. The mechanism effect suggests that ZWCP promotes GTI by increasing research expenditure and enhancing informational development. The heterogeneity effect suggests that ZWCP is more powerful in promoting GTI when it is implemented in western, low administrative level, and resource-based cities. The paper provides a reference for waste management policies and development of GTI in other countries.

Environmental protection tax reform and corporate Climate Risk Disclosure

The reform of the environmental protection tax (EPT), a crucial policy instrument for combating climate change, significantly influences corporate climate risk. Hence, a thorough examination of the connection between EPT and corporate climate risk disclosure (CRD) is essential for companies to better evaluate the risks and challenges they encounter. The findings of the research indicate: (1) EPT reform substantially boosts corporate CRD. (2) Mechanism tests demonstrate that EPT enhances corporate CRD via three pathways: increasing public environmental awareness, fostering green innovation, and improving total factor productivity. (3) Heterogeneity analysis shows that various factors such as micro-level corporate characteristics (ownership and corporate life cycle), industry features (high-tech industries and factor intensity), and macro-level aspects (urban location, size, and resource attributes) differentially affect the impact of EPT. (4) Additional analysis from the perspective of institutional investors indicates that a higher proportion of institutional investor holdings amplifies the positive effect of EPT on corporate CRD. These research conclusions aid in accurately assessing the CRD impact of EPT and provide empirical support for policy development and modification.

Bridging the green gap: Unveiling the complex interplay of national cultural dimensions, management effectiveness and corruption in driving green innovations

The objective of this research is to investigate the relationship between national culture, management score, corruption, and its implication on firms’ green innovation. This paper analyses 2588 firm year data using panel corrected standard errors (PCSE), two stage least regression (2SLS) and Generalized Method of Moments (GMM). This paper also conducts quantile regressions and propensity score matching (probit regression) for the effect of national cultures on country’s corruption. Our initial observation found that national culture of long-term orientation is positively associated with green innovation. But in contrast to earlier findings, green innovation is negatively associated with individualism and indulgence. Nonetheless, when management score is used as a moderating variable for long term orientation national culture, a negative observation is made, likely due to restrictive regulatory compliance, conflict of interest or even inconsistent ideas amongst the management and the employees during the long-term execution of the project.

Environmental regulation and enterprise green innovation: a dual heterogeneity perspective

ABSTRACT Based on institutional theory, environmental regulation (ER) is considered the primary factor in stimulating green innovation (GI) in enterprises. The existing literature has extensively explored the ER-GI relationship, but conclusions are still inconsistent, which is related to neglecting the dual heterogeneity in this relationship. Hence, we divide ER into command ER (CER) and incentive ER (MER), and GI into compliant GI (CGI) and strategic GI (SGI) to address this research gap. Employing a questionnaire survey of Chinese manufacturing enterprises, we re-examined the ER-GI relationship and tried to identify the moderating effect of environmental ethics (EE). The results show that CER and MER positively affect CGI and SGI. Furthermore, under the CER, there is increased accessibility to adopting CGI. Under the MER, the likelihood of choosing SGI is higher. Moreover, we find that heterogeneous ERs are more conducive to SGI under the moderating effect of EE. This study has significantly contributed to the literature on the ER-GI relationship.

Digital finance and green technology innovation: A dual path test based on market and government

This paper examines the impact of digital finance on green technological innovation from the dual perspectives of market and governmental. Our findings suggest digital finance significantly fosters green technological innovation through mechanisms such as market factor flows and environmental regulation performance. Further examination indicates that digital finance may lead to a "patent bubble trap". Heterogeneity analysis suggests that promoting government data openness and strengthening intellectual property protection can amplify the positive impact of digital finance on green technological innovation. This paper provides valuable insights into enhancing the functionality of digital finance and promoting the green transformation of the economy.

How Does a Green Supply Chain Improve Corporate Carbon Performance

Drawing from A-share listed companies’ data from the Shanghai and Shenzhen stock markets in China (2013–2022), this paper adopts the differential model to test the impact and mechanism of a green supply chain (GSC) pilot on pilot enterprises. The results show that the GSC pilot effectively improved the carbon performance of the pilot enterprises and passed a series of robustness tests. Mechanism analysis finds that green innovation, efficiency improvement, and environmental information disclosure (EID) can reduce the carbon emissions of enterprises. The moderating effect discovers that environmental regulation and environmental attention effectively strengthened the role of the GSC pilot in improving carbon performance. In addition, this paper finds that the pilot had a better carbon reduction effect on mature, technology-intensive, and non-state-owned enterprises. The above research conclusions provide strong support for the government to build a GSC and promote low-carbon development.

Green Supply Chain Technology Innovation and Enterprise Synergy in the Context of Sustainable Development: Challenges and Strategie

This study explores the synergistic development between technological innovation and enterprises in green logistics supply chains from the sustainable development perspective. The study first introduces the latest progress of China's environmental policies and technological innovation and analyses the importance and necessity of green logistics supply chain management. Subsequently, through case studies and theoretical research, this paper discusses the policies and regulations of green supply chain management, collaborative management among enterprises, and the development path of technological innovation. It further analyses the contents of policies and regulations, enterprise collaboration management, and technological innovation in green logistics supply chain management. It proposes strategies and suggestions to solve problems by combining cases and theories. Finally, this study summarises the development status of green logistics supply chain management. It looks forward to future development trends, emphasizing that more enterprises should strengthen cooperation to jointly promote green logistics supply chains, environmental protection, and sustainable economic and social development.

Research on the Impact Mechanism of ETS on Green Innovation in China’s High-Carbon Industries: A Perspective of Enterprise Heterogeneity

Green technology innovation is an important driving force for low-carbon development of enterprises. As a market-based environmental policy to promote greenhouse gas emission reduction, whether carbon emission trading scheme (ETS) can encourage enterprises to carry out green technology innovation under the background of “dual carbon” goal deserves further research. Taking Chinese A-share listed enterprises in the five major sectors as samples, this study constructed a modified Difference-in-Differences (DID) model to test the causal effect of ETS on green innovation in high-carbon industries. Three significant results can be summarized from the empirical study. Firstly, the ETS has a significant promoting effect on green innovation of high-carbon enterprises. And it can effectively promote high-carbon enterprises to achieve an average of a 13.24–19.56% increase in low-carbon innovation capabilities. Secondly, enterprises with different characteristics have heterogeneity in the impact of ETS implementation on green innovation. Secondly, the implementation of ETS exerts heterogeneous effects on green technology innovation across enterprises that possess diverse characteristics. Enterprises with a large capital scale (low equity concentration) have a more significant promoting effect than those with a small capital scale (high equity concentration). Thirdly, the green innovation effect of ETS exhibits significant heterogeneity across different types of industries. In the mining, manufacturing, and construction sectors, the ETS has effectively stimulated green innovation to a certain extent. There has been no significant change in green innovation in the sector of electricity, heat, gas, and water production and supply. In particular, after the implementation of the ETS, green innovation has actually been weakened in the transportation sector. As such, for policy makers, differentiated ETS policies should be implemented based on the actual situation of different industries and types of carbon-emitting enterprises.

How are firms motivated to greenly innovate under the pressure of ESG performance? Evidence from Chinese listed firms

The impact of environmental, social, and governance (ESG) performance gaps on firm green innovation is examined in this paper by a panel database of A-share Chinese listed companies from 2011 to 2021. Using multiple linear regression and conducting a series of endogeneity tests and robustness checks, our empirical analysis shows that firm ESG performance gaps have significantly positive effect on green innovation. Both ESG performance below historical aspiration and social aspiration levels enhance a firm’s green innovation. Confucian culture negatively moderates the positive relationship between ESG performance gaps and green innovation, suggesting that firms more influenced by Confucian culture exhibit reduced green innovation than those less influenced. Additionally, firm digitalization positively moderates the positive relationship between ESG performance gaps and green innovation, indicating that firms with higher levels of digitalization are better equipped to improve green innovation when facing ESG performance shortfalls. This study extends the existing knowledge of firm ESG performance and motivation of green innovation. The research findings offer practical insights for leveraging the motivation and capabilities of green innovation to attain firm ESG objectives.

Executive Green Perception and Green Innovation Improve New Quality Productivity in Chinese Listed Firms

This research focuses on Chinese listed companies to explore the influence of green-oriented strategies and green innovation on corporate productivity. Using empirical data from 2011 to 2022, the study investigates the positive effects of executives’ green perceptions on new quality productivity and the enhancing role of green innovation. The results indicate that executives’ green perceptions significantly enhance new quality productivity. Furthermore, heterogeneity analyses reveal variations in this effect based on firm size, type, and pollution levels, demonstrating the environmental sensitivity of green strategies. Robustness tests reinforce the consistency of these results. Additionally, the research establishes that green innovation not only directly boosts new quality productivity but also strengthens the positive influence of executive green perceptions on productivity. These insights emphasize the critical synergy between green innovation and executive commitment to sustainability as a means to boost productivity, offering valuable guidance for policymakers and business leaders aiming to advance corporate productivity through sustainable practices.

Does government-driven infrastructure boost green innovation? Evidence of new infrastructure plan in China

The role of government-driven investment in improving environmental quality has long been an essential concern of environmental research. Using a spatial difference-in-differences model, this study investigates the influence of government-driven new infrastructure investment on green innovation. Based on a panel dataset of 276 Chinese cities from 2005 to 2019, we find a positive effect of high-speed rail (HSR) and smart city (SC) construction on green innovation. Compared with cities that are unconnected to the HSR network, those that are accessible by HSR experienced a 20.6 % increase in per capita green patents. In addition, being a SC planned by the government is associated with 14.8 % more green patents per capita than other cities. Moreover, government-promoted new infrastructure has significant spatial spillover effects on green innovation in adjacent cities. Regional sensitivity is found in promotional and spatial spillover effects. The findings of our study offer essential insights for developing effective policies for advancing infrastructure modernization and environmental protection simultaneously.

The Levels of Government Environmental Attention and Enterprises’ Green Technological Innovation

This study utilizes data from listed companies on the Shanghai and Shenzhen stock exchanges from 2010 to 2023 and employs text analysis methods to investigate the impact of government environmental concerns on corporate green technology innovation and its underlying impact mechanisms. The empirical findings demonstrate that heightened government environmental concerns significantly foster corporate green technology innovation. This relationship remains robust across a series of sensitivity analyses. The impact mechanism analysis reveals that increased government environmental concern leads to a heightened intensity of environmental regulation, drives the intelligent transformation of enterprises, and enhances the implementation of corporate environmental strategies, collectively contributing to the improvement of corporate green technology innovation capabilities. Furthermore, the heterogeneity analysis indicates that the effect of government environmental concerns is more pronounced in state-owned enterprises, mature enterprises, and industries with lower pollution levels. This study underscores that the government’s intensified focus on environmental issues can effectively promote corporate green technology innovation, thereby promoting sustainable economic and social development and supporting the dual goals of environmental protection and economic growth.

Executive green cognition and corporate ESG performance

This paper examines how executive green cognition influences corporate ESG performance using data from Chinese listed companies. The results indicate that higher level of executive green cognition substantially enhance ESG performance. Specially, this paper finds that this positive impact is achieved through advancements in green innovation and improvements in the quality of environmental information disclosure. Additionally, heterogeneity analysis reveals that the benefits of executive green cognition on ESG performance are more significant in industries with lower competition and among non-state-owned enterprises. This paper introduces a novel perspective on enhancing ESG performance, offering valuable insights for promoting sustainable development within enterprises.

Unleashing the power of green fiscal policies: Driving energy efficiency in China

This study examines the impact of such policies on energy efficiency by focusing on the “National Comprehensive Demonstration of Energy Saving and Emission Reduction Fiscal Policy” (ESER fiscal policy). Using a difference-in-difference method with multiple time points, the study finds that the ESER fiscal policy has significantly closed the total factor energy efficiency (TFEE) gap. The results are robust, supported by sensitivity analyses such as variable substitutions, dynamic effect tests, exclusion of potential intervening variables, placebo tests, and propensity score matching. Mechanism analysis shows that the pilot program closes the energy efficiency gap by increasing expenditure on environmental protection, improving agglomeration of productive services, and promoting of green technological innovation. Furthermore, the impact of green fiscal policies on TFEE is more pronounced in cities within two-control areas, non-old industrial base cities, large-scale cities, and resource-depleted cities. The analysis of the energy rebound effect found that green fiscal policies can effectively close the energy efficiency gap without generating energy rebound. These findings provide valuable insights and empirical evidence on the effectiveness of China's green fiscal policies in achieving green development, improving quality and efficiency.

The deterrent effect of environmental judicature on firms' pollution emissions: Evidence from a quasi-natural experiment in China

This paper investigates the deterrent effect of environmental judicature on firms' pollution emissions. Regarding the establishment of environmental courts (ECs) in China as a quasi-natural experiment, our staggered Difference-in-Differences (DID) estimation shows that strengthening environmental judicature has a negative, causal effect on firms' pollution emissions. The exogenous establishment of ECs decreases industrial firms' pollution emission intensity by approximately 7.8 %. Heterogeneity analysis shows that the negative effect of ECs on pollution emissions is particularly salient for firms in regions with weak environmental awareness, firms in industries with low competition, and firms with a high intensity of pollution emissions. Mechanism analysis indicates that the establishment of ECs enhances environmental justice and increases environmental violation costs, thereby having a deterrent effect on firms' pollution emissions. To comply with the more stringent environmental judicature, firms located in cities with ECs may temporarily cut their production, use more clean energy and buy more desulfurization equipment. In the long term, they may engage in more green and cooperative innovations, further substantiating the deterrent impact of stringent environmental judicature. Our findings can offer valuable insights for corporate green transformation and government pollution control.