Environmental protection policy and green innovation in China

Qadeer Abdul and Xu Jiang

Applied Economics Letters, 2025, vol. 32, issue 14, 2040-2044

Abstract: Based on institutional theory, this letter examines the effects of a nationwide environmental protection policy, i.e. the New Development Philosophy (NDP), on green innovation in China. Our predictions were tested based on a dataset of 2,645 Chinese listed firms from 2009 to 2017. Results obtained from Poisson regressions indicate that firms respond actively to NDP by engaging more extensively in green innovation. This relationship is positively moderated by CEO attributes, i.e. CEO tenure, technical background, political connections, and international education. Our findings suggest that policymakers should exert efforts to enact policies that promote green innovation. Also, the study will help managers to make more informed decisions about investing in green innovation.

Date: 2025
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DOI: 10.1080/13504851.2024.2332528

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