Business environment optimization and regional green innovation: evidence from Chinese provinces

Shanyong Wang, Rongwei Zhang and Liang Wan

Journal of Environmental Planning and Management, 2025, vol. 68, issue 6, 1337-1362

Abstract: Green innovation is important to drive the green transformation of production methods and to fundamentally alleviate the contradiction between economic development and resource and environmental constraints. How to spur green innovation is still an underexplored but intriguing research issue. Drawing on data from Chinese 30 provinces from 2004 to 2020, this paper examines whether and how the business environment affects regional green innovation. Our evidence indicates that the enhancement of doing business has a positive impact on regional green innovation. The result is consistent with a series of robustness tests. Further analysis shows that business environment optimization promotes regional green innovation by boosting the development of technology markets, strengthening government environmental regulations, and expanding openness. The impact is more pronounced in regions with stronger financial development and better resource endowment. Additionally, we find that the promotion of doing business can be converted into ecological benefits, and effectively reduce environmental pollution. These findings provide a reference for optimizing the business environment and achieving high-quality development in China.

Date: 2025
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DOI: 10.1080/09640568.2023.2286924

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