Venture Capital, Environmental Regulation and Regional Green Innovation: Evidence from China

Tianyue Liu and Xiaohui Tao

International Journal of Business and Management, 2024, vol. 19, issue 6, 220

Abstract: Venture capital can promote green innovation by providing financial support for green innovation activities. Based on panel data from 30 provincial-level administrative regions in China, this research analyzes the impact of venture capital on green innovation and its underlying mechanisms. The results show that venture capital significantly promotes regional green innovation. Through the mediation analysis, it is found that venture capital primarily promote green innovation by increasing R&D investment and improving the level of research team level. The increase in R&D investment is the main pathway through which venture capital influences the level of green innovation, as firms receiving venture capital are more willing to allocate these funds towards green innovation activities. The study also finds that the impact of venture capital on green innovation is influenced by environmental regulation, with an upper limit to the intensity of environmental regulation. Environmental regulation below this limit value amplifies the positive effect of venture capital on green innovation, while regulation exceeding this threshold reduces the effect of venture capital on green innovation. The article confirms the important role of venture capital in promoting green innovation, enriches the research on the innovation effects of venture capital, and provides theoretical references for green development.

Date: 2024
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ccsenet.org/journal/index.php/ijbm/article/download/0/0/50842/55102 (application/pdf)
https://ccsenet.org/journal/index.php/ijbm/article/view/0/50842 (text/html)

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:ibn:ijbmjn:v:19:y:2024:i:6:p:220

Access Statistics for this article

More articles in International Journal of Business and Management from Canadian Center of Science and Education Contact information at EDIRC.
Bibliographic data for series maintained by Canadian Center of Science and Education ().