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Does corruption hurt green innovation? Yes – Global evidence from cross-validation

Jun Wen, Hua-Tang Yin, Chyi-Lu Jang, Hideaki Uchida and Chun-Ping Chang

Technological Forecasting and Social Change, 2023, vol. 188, issue C

Abstract: Green innovation is essential for human beings to balance growth and climate change mitigation. The corruption-green innovation nexus has been studied by two existing studies, but the relative weak econometrical work and the lack of exploration in the context of inter-government cooperation on global climate change call for a revisited investigation. Our research robustly tests and confirms that corruption has a significantly negative effect on green innovation, which overturns the opposing conclusion of the previous global examination. Moreover, we find that the signing of international environmental agreements (IEAs) mitigates corruption's negative effect in the short term, whereas IEA's entry into force deteriorates this hindering impact in the long term. Such a divergence may originate from a change in the expectation of economic entities in the government's enforcement quality of environment policies issued for meeting IEA's emission target. Lastly, we provide several suggestions for dealing with climate change more effectively from the perspective of global governance.

Keywords: Green innovation; Corruption; International environmental agreement (search for similar items in EconPapers)
JEL-codes: D73 O13 P28 Q50 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (18)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:tefoso:v:188:y:2023:i:c:s0040162522008344

DOI: 10.1016/j.techfore.2022.122313

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