The Impact of Low-Carbon Location Policy on Corporate Green Innovation: A Quasi-Natural Experiment Based on National Low-Carbon Industrial

Zhidong Tan, Qiandi Ma, Chiao-Ming Cheng and Lu-Jui Chen

Emerging Markets Finance and Trade, 2025, vol. 61, issue 11, 3514-3531

Abstract: Industrial parks, as spaces with the most concentrated urban carbon emissions, are the most important entry point and focal point for promoting regional low-carbon construction. Therefore, exploring the policy effect of low-carbon industrial parks has theoretical value and practical significance. This paper employs the difference-in-differences (DID) method and leverages the quasi-natural scenario of national low-carbon industrial parks to analyze the impact of low-carbon location policy on corporate green innovation basing on the data of listed companies in China from 2010 to 2021. The results show that low-carbon location policy significantly improves the level of corporate green innovation. Heterogeneity analysis indicates that the policy effect is mainly seen in technology-intensive companies and those with high public environmental attention. Mechanism analysis suggests that alleviating financing constraints and increasing government green subsidies are important pathways through which low-carbon location policy significantly enhances corporate green innovation. The findings expand the research on the microeconomic consequences of low-carbon location policy and enrich the related research on factors influencing corporate green innovation. They can provide some reference for promoting corporate green innovation and the construction of low-carbon industrial parks.

Date: 2025
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DOI: 10.1080/1540496X.2025.2486687

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