Green investment, environmental regulation, and environmental performance

Xiaohong Kang, Jinghui Zhang, Wanhua Ren and Junhong Shi

Finance Research Letters, 2025, vol. 80, issue C

Abstract: This study examines the mechanism of green investment and environmental regulation on corporate environmental performance and confirms the moderating effect of environmental regulation using a two-way fixed-effects panel model based on data from Chinese energy-listed companies from 2013 to 2022. The study reveals that (1) green investment significantly enhances corporate environmental performance. (2) Environmental regulation exhibits an inverted U-shaped effect on environmental performance. (3) Environmental regulation positively moderates the green investment-environmental performance nexus. (4) Green investment exerts a more pronounced positive impact on the environmental performance of state-owned enterprises and firms in central-western regions. Policymakers should adopt region-specific environmental strategies, while enterprises should increase green investments to achieve economy-environment synergy.

Keywords: Green investment; Environmental performance; Environmental regulation; Energy industry (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:80:y:2025:i:c:s1544612325006439

DOI: 10.1016/j.frl.2025.107383

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