Unveiling the green innovation paradox: Exploring the impact of carbon emission reduction on corporate green technology innovation

Haichao Li, Yuqi Su, Chante Jian Ding, Gary Gang Tian and Zhan Wu

Technological Forecasting and Social Change, 2024, vol. 207, issue C

Abstract: This study adopts Porter's hypothesis as its theoretical framework and focuses on Chinese A-share listed companies. Using a multidimensional fixed effect model and mechanism analysis, it investigates the impact of carbon emission reduction on enterprises' green technological innovation. The findings reveal a notable inverted U-shaped relationship between carbon emission reduction and corporate green technology innovation, highlighting the presence of the green innovation paradox. Additionally, the study demonstrates that carbon emission reduction positively influences green technology innovation by promoting the fulfillment of corporate environmental, social, and governance (ESG) responsibilities. Furthermore, through panel threshold model analysis, it identifies a threshold value of 21.1448 for corporate ESG responsibility, beyond which the inhibitory effect on corporate green technological innovation shifts to facilitation. By establishing a novel theoretical analysis framework, this paper contributes to the understanding of corporate carbon emission reduction, ESG responsibility fulfillment, and green technology innovation. Moreover, it provides practical insights on implementing carbon emission reduction targets, advancing ESG system construction, and enhancing green technology innovation capacity for enterprises.

Keywords: Carbon emission reduction; Corporate ESG responsibility; Green technology; The innovation paradox; Porter's hypothesis (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:tefoso:v:207:y:2024:i:c:s0040162524003585

DOI: 10.1016/j.techfore.2024.123562

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