Environmental regulation and green innovation: Does state ownership matter?

Ziyi Zhao, Yuhuan Zhao, Xin Lv, Xiaoping Li, Lu Zheng, Shunan Fan and Sumin Zuo

Energy Economics, 2024, vol. 136, issue C

Abstract: Understanding the impact of environmental regulation on firm green innovation is crucial to achieve environmentally inclusive and sustainable growth. Based on the panel data covering 2191 manufacturing firms in China from 2010 to 2018, this study explores the impact of environmental regulation on green innovation from the perspective of firm state ownership. We have adopted the negative binomial model, Propensity score matching (PSM) method, and Poisson model in this study and our results show that: (1) Strict environmental regulation negatively affects firm green innovation, with the effect being stronger for quality of green innovation. (2) The negative impact of environmental regulation on firm green innovation is weaker for state-owned enterprises (SOEs) compared with non-SOEs. (3) Compared with traditional industries, SOEs in emerging industries are willing to engage in green innovation under strict environmental regulation. (4) Compared with undeveloped regions, SOEs in developed regions are willing to engage in green innovation under strict environmental regulation. (5) Compared with non-SOEs with strict environmental regulation, it is easier for SOE with smaller separation of ownership and control to engage in green innovation. (6) In emerging industries and developed regions, good corporate governance could promote the impact of environmental regulation on SOE green innovation.

Keywords: Environmental regulation; Green innovation; State ownership; Separation of ownership and control; Corporate governance (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:136:y:2024:i:c:s0140988324004705

DOI: 10.1016/j.eneco.2024.107762

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