 Air pollution and corporate green innovation in ChinaXinru Ma and Jingbin He Economic Modelling, 2023, vol. 124, issue C Abstract: Green innovation is crucial for modern firms to achieve green transformation in the context of sustainable development. Although some studies have shed light on the determinants of green innovation, little is known about whether ambient environmental factors play a role. Using data of Chinese listed firms from 2007 to 2019, we explore the association between air pollution and corporate green innovation. We find that ambient air pollution in firms’ headquarters is positively related to subsequent green innovation (hereafter, the AQI-GI relationship), consistent with stakeholder theory. This relationship is stronger for firms with more analyst reports, corporate site visits, and institutional ownership. Moreover, the AQI-GI relationship is robust based on the exogenous variation of air pollution extracted by strong wind and rainfall. Environmental protection law revision has a positive effect on the AQI-GI relationship. These findings suggest that firms actively respond to surrounding air conditions by implementing green innovation. Keywords: Air pollution; Green innovation; Stakeholder requirement (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:124:y:2023:i:c:s0264999323001177 DOI: 10.1016/j.econmod.2023.106305 Access Statistics for this article Economic Modelling is currently edited by S. Hall and P. Pauly More articles in Economic Modelling from Elsevier |
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