Government environmental governance and firms’ green innovation: Evidence from listed firms in heavy pollution industries of China

Zhengyong Zhang, Xuan Dai and Yi Ding

Finance Research Letters, 2023, vol. 55, issue PA

Abstract: Based on the government work reports of 230 Chinese prefecture-level cities from 2007 to 2019, we create a new metric for government environmental governance by Python crawler technology. Using data from listed firms in heavy pollution industries, we find that government environmental governance significantly promotes firms’ green innovation, and the effect is a crowding-out of other innovation activities. Further analyses indicate that government environmental governance can enhance green innovation from both the end and source of the production and contributes significantly to both substantive and strategic green innovation. Meanwhile, the positive association is heterogenous by property rights and firm sizes.

Keywords: Government environmental governance; Green innovation; Heavy pollution firms (search for similar items in EconPapers)
JEL-codes: E61 G31 M21 O40 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1544612323002209
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:55:y:2023:i:pa:s1544612323002209

DOI: 10.1016/j.frl.2023.103848

Access Statistics for this article

Finance Research Letters is currently edited by R. Gençay

More articles in Finance Research Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().