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This paper investigates the impact of China's environmental regulations, with a focus on the green credit policy, on green innovation in pursuit of the "carbon peak and carbon neutrality" goal. Given the implementation of the 2012 Green Credit Guidelines, this paper employs the Difference-in-Difference Method (DID) and conducts a quasi-natural experiment to empirically examine the interactions among the central government, local governments, and high-pollution and high-emission enterprises by exploring the impact of green credit policies on green innovation of these enterprises. Relying on 4503 samples of 237 high-pollution and high-emission enterprises listed in the main board in China from 2003 to 2021, this study reveals that the green credit policy can improve green innovation of these enterprises. Specifically, this study explores the detailed mechanism through which the green credit policy enables these enterprises to increase their market concentration and then the monopoly profits, which in turn promotes their green innovative productivity. In addition, this paper also reveals how local governments' political and financial incentives may serve as positive and negative moderating factors, respectively, within the impact mechanism. This study has valuable implications for how to effectively formulate and implement environmental regulations by balancing the interests of the central government, local governments and enterprises. [ABSTRACT FROM AUTHOR]

As China's longest-implemented market-based environmental regulation policy, emission charges have contributed outstandingly to improving the ecological environment and reducing firms' pollution emissions. We assess the impact of emission charges on the innovation quality of Chinese firms based on the perspective of firms' breakthrough technological innovation. By observing Chinese A-share listed firms with heavy pollution from 2011 to 2020, we find that corporate breakthrough technological innovation positively moderates the emission charges to enhance the quality of corporate innovation. Our mechanism tests suggest that emission charges and breakthrough technological innovation positively affect innovation quality by improving the means of green innovation of enterprises. In addition, heterogeneity analysis shows that emission charges and firms' breakthrough technological innovation are only effective in improving the innovation quality of state-owned firms, and the effect on the innovation quality of non-state-owned firms is not significant. Our findings suggest that the imposition of emission charges and incentives for firms to embark on breakthrough technological innovation can effectively improve the quality of innovation. • The article is probably the first literature to explore the effects of breakthrough technological innovation and emission charges on the innovation quality of heavily polluting enterprises in China, enriching the research on the impact of enterprise innovation models on environmental regulation. • Based on the IPC information of enterprise patent applications, the paper distinguishes enterprise innovation patterns and explores the moderating effect of breakthrough technological innovation on emission charges to enhance the quality of enterprise innovation. • This paper provides micro evidence on the impact of environmental regulation on innovation quality based on the perspective of firms' breakthrough technological innovation, which has important implications for adopting environmental regulation to achieve a "win-win" situation between pollution control and improving innovation quality. [ABSTRACT FROM AUTHOR]

In recent years, green innovation has become an important means of achieving sustainable development, but the impact of peer firms on green innovation is less discussed. To fill this research gap, this paper explores the effect of peer firms on the green innovation activities of the Chinese A-share listed firms in the manufacturing industry from 2011 to 2020 and investigates influencing factors of peer effect. The main findings are as follows. First, there is a peer effect in making green innovation decisions. Second, industry competition has a positive moderating effect on the peer effect of green innovation. Third, digital financial inclusion and government intervention both promote the peer effect of green innovation. The peer effect is more significant with a high degree of digital financial inclusion. But the peer effect has no significant difference between different degrees of government intervention. This paper aims to explore the influencing factors of a firm's green innovation from the perspective of peer effect. The research results can provide a guide for the government to better promote green innovation activities of firms and benign competition in the industry. • A firm's green innovation activities are positively affected by industry peers. • Industry competition has a positive moderating effect on green innovation peer effect. • Digital financial inclusion and government intervention both promote the peer effect. • The peer effect is more significant with a high degree of digital financial inclusion. • The peer effect has no significant difference between different degrees of government intervention. [ABSTRACT FROM AUTHOR]

In recent years, green innovation has become an important means of achieving sustainable development, but the impact of peer firms on green innovation is less discussed. To fill this research gap, this paper explores the effect of peer firms on the green innovation activities of the Chinese A-share listed firms in the manufacturing industry from 2011 to 2020 and investigates influencing factors of peer effect. The main findings are as follows. First, there is a peer effect in making green innovation decisions. Second, industry competition has a positive moderating effect on the peer effect of green innovation. Third, digital financial inclusion and government intervention both promote the peer effect of green innovation. The peer effect is more significant with a high degree of digital financial inclusion. But the peer effect has no significant difference between different degrees of government intervention. This paper aims to explore the influencing factors of a firm's green innovation from the perspective of peer effect. The research results can provide a guide for the government to better promote green innovation activities of firms and benign competition in the industry. • A firm's green innovation activities are positively affected by industry peers. • Industry competition has a positive moderating effect on green innovation peer effect. • Digital financial inclusion and government intervention both promote the peer effect. • The peer effect is more significant with a high degree of digital financial inclusion. • The peer effect has no significant difference between different degrees of government intervention. [ABSTRACT FROM AUTHOR]

The dual-credit policy is expected to achieve subsidy policy withdrawal through the effective market-oriented mechanism of credit trading, which has both rewards and sanctions for auto firms. The policy can activate the endogenous motivation of automakers to conserve energy and cut carbon emissions, which aids in creating a long-term mechanism to foster the growth of the auto industry. This paper examines the impact of the dual-credit policy on the quantity and quality of green innovation in auto firms using the difference-in-differences (DID) model. Based on the data of listed firms in the auto industry in the China A-share market from 2014 to 2020, we discover that the DCP-assessed auto firms' green innovation performance improves significantly after implementing the DCP. By analyzing the mediating effect, we identify that the dual-credit policy enhances corporate environmental responsibility and R&D investment, thus improves their green innovation performance. Further, the role of the dual-credit policy in enhancing green innovation increases significantly with the weakening of government environmental subsidies and the strengthening of government environmental penalties. Our findings expand the research on the implementation effects of the dual-credit policy and policies combining environmental regulation and market incentives. We emphasize the importance of the dual-credit policy in furthering the reform of the energy consumption structure and building a green innovation system that is focused on the market, and we propose that the government play a complementary role with the market through reasonable regulation and supervision. • The dual-credit policy (DCP) can improve auto firms' green innovation. • The corporate environmental responsibility and R&D investment are primary mechanisms for improvement of green innovation. • Government subsidies dampens the green innovation-enhancing effect of the DCP. • Government environmental penalties promotes the green innovation-enhancing effect of the DCP. [ABSTRACT FROM AUTHOR]

Transparent environmental information is fundamental for the government to better regulate pollution and for the public to be aware of pollution. However, how the improvement of environmental information transparency affects firms' environmental behavior has been underexplored. This paper fills this gap by exploring the impact of China's air quality monitoring and disclosure program on the green innovation of firms; via this program, real-time air quality monitoring stations have been constructed nationwide, and the information is promptly released to the public. The results of a difference-in-differences estimation show that the information program has significantly increased the green innovation of firms, especially the number of green invention patent applications. Moreover, this increase is realized via the regulatory effect of both the local government and public attention. Additionally, the green innovation effect performs stronger in state-owned enterprises (SOEs) and firms in heavily polluting industries. This paper contributes to the related literature from the perspective of central government-led real-time transparent environmental information disclosure. The findings of this study highlight policy implications from the perspective of the importance of the application of information technology in environmental regulation, as well as the vital role of information-based instruments in exerting a public regulatory effect on environmental governance. • Effect of pollution information disclosure on firm's green innovation is tested. • DID is used exploiting China's Air Quality Monitoring-and-Disclosure Program. • The pollution information disclosure significantly boosts firm' s green innovation. • The mechanism is the regulatory effect from local governments and public attention. • Porter's Hypothesis is supported from the new view of information disclosure. [ABSTRACT FROM AUTHOR]

Corporate social responsibility (CSR) approaches are becoming increasingly widespread as environmental performance (EP) continues to be a significant aspect of developing a firm's socioemotional wealth, such as legitimacy, trustworthiness, and image. We draw on stakeholder and natural-resources-based view theories to investigate how CSR strategies may improve environmental performance via the underlying mechanism of green innovation (GI), especially in developing countries. Useable data was collected from 367 Maldivian and Moroccan service enterprises and analyzed using partial least squares (PLS-SEM) methodology. The findings indicated that external (Environment and Community) and internal (Employees) CSR-related approaches significantly impact environmental performance. Furthermore, the study suggests a mediation effect of GI on the CSR-EP nexus. Finally, this paper opens significant directions, enriches existing theories, and provides fascinating implications for SMEs professionals. • Examined the causal effect of internal and external CSR-related approaches on environmental performance. • External and internal CSR-related approaches significantly improve environmental performance. • No relation exists between CSR to consumer and environmental performance. • Green innovation partially mediates the External CSR - environmental performance nexus. [ABSTRACT FROM AUTHOR]

To drive sustainability on a global scale for a carbon-neutral future, green innovations and a better understanding of how intellectual property (IP) impacts their research, development, and diffusion are needed. In this paper, we identify IP models adopted by green innovators in three innovation process phases, namely: research; development/commercialization; and diffusion phases, contrasting findings across three organization categories: new ventures; universities; and established firms. Our analysis is based on a qualitative content analysis of 57 green innovations recognized by the European Inventor Award, a highly prestigious international prize awarded annually by the European Patent Office. The analysis shows the degree of openness in IP sharing increasing along the innovation process. Unlike established firms who adopt closed IP models predominantly throughout the innovation process phases, new ventures and universities adopt closed IP models in research and development phases to protect inventions and later share the IP, primarily patents, with others via licensing (exclusive or non-exclusive) to accelerate commercialization and diffusion for broader sustainability impact. The findings point towards a need for interventions at managerial and IP policy level that move beyond incentivizing innovations through exclusivity towards facilitating strategic and collaborative approaches to IP sharing that can accelerate sustainability transitions. [ABSTRACT FROM AUTHOR]

This paper explores the relationship between green innovation and urban carbon emission efficiency (CEE). Based on the panel data of 108 cities in the Yangtze River Economic Belt, the spatiotemporal evolution pattern of green innovation and urban CEE is investigated. The spatial Durbin model shows that green innovation has a positive and significant effect on CEE. The conclusions are robust after considering different spatial weight matrices and possible patent hysteresis. Furthermore, it is found that environmental regulation and industrial upgrading play a significant role in strengthening the relationship between green innovation and CEE. Heterogeneity analysis shows that green innovation has a more significant effect on CEE in the middle and lower reaches of the Yangtze River and in the period of 2012–2017. In addition, the impact of green innovation on CEE is linear, while the impact of general innovation on CEE is U-shaped, reflecting the important driving role of green innovation for CEE. The findings in this study offer a reference for improving the efficiency of spatial allocation of technical elements, which are conducive to urban green and low-carbon transformation. • The spatiotemporal pattern of green innovation and urban CEE is investigated. • Evident heterogeneity exists in the promotion effect of green innovation. • The impact of general innovation on CEE is U-shaped. • The synergistic effect of industrial upgrading is further discussed. [ABSTRACT FROM AUTHOR]

In this paper, a model for the slacks-based measure of super-efficiency in data envelopment analysis (SBM-DEA) was used to measure the green innovation efficiency (GIE) of 79 cities in the Yellow River Basin (YRB) from 2003 to 2018. In addition, the panel threshold model was employed to test the nonlinear relationship between environmental regulation intensity (ERI) and GIE. According to the results, the average GIE in the YRB was 0.68. However, the GIE exhibited a rising and fluctuating temporal trend and the following spatial trend: "lower reaches > upper reaches > middle reaches." Moreover, ERI had a double threshold effect on GIE in the YRB. That is, ERI had a significant positive impact on GIE only when ERI ranged between 0.595 and 0.899. Furthermore, the upper, middle, and lower reaches of the YRB exhibited different nonlinear correlations between ERI and GIE. Therefore, it is essential to implement environmental regulations that are appropriate for the actual conditions of each region. In addition, the per capita income, teacher resources, industrial structure, and actual utilization of foreign capital are significant factors affecting GIE in the YRB. These findings can help governments formulate suitable environmental policies and promote green innovation in the YRB, thereby contributing toward the goal of global sustainable development. • The efficiency of green innovation in the Yellow River Basin increases. • The efficiency of green innovation shows a spatial pattern of "lower reaches > upper reaches > middle reaches". • Regulations have a double threshold effect on the efficiency of green innovation. • The efficiency of green innovation must be improved based on the actual development of each region. [ABSTRACT FROM AUTHOR]

This paper provides an in-depth understanding of the mechanisms of green finance on green innovation, focusing on their spatial and non-linear relationships. Using panel data of 30 provinces of China during the period of 2009–2017, a green finance index is constructed, and the spatial Durbin model and panel threshold model are used. The results reveal that: (1) Green finance and green innovation had significant positive autocorrelation, and the development of green finance in provinces of central and western China were still in the lower-level range. (2) The coefficients of the direct effect and indirect effect of green finance on green innovation were significantly positive, which indicated that green finance was conducive to enhancing green innovation in local and adjacent provinces during the research period. (3) Double threshold effects of green finance on green innovation were observed, which demonstrated that the driving effect of green finance was decreased with the raising of intensity of environmental regulation. The implication of these results is that government should make full use of the radiation and trickle-down functions of green finance and green innovation to narrow regional gaps in sustainable development while maintaining a moderate intensity of environmental regulation. • A green finance index of 30 provinces of China during the period of 2009 to 2017 was constructed on the basis of green credit, green securities, green insurance, and green investment. • The heterogeneity of region and time for green finance were analyzed employing the spatial exploratory analysis, which manifested that the spatial evolution of green finance in China presents a gradient decreasing pattern from east to west. • The impact of green finance on green innovation was explored by the spatial Durbin model, which proved that the direct effect and the spatial spillover effect were significantly positive. • Moderate intensity of environmental regulation helps green finance promote green innovation and this value should not exceed a maximum of 0.935. [ABSTRACT FROM AUTHOR]

China has incorporated green technology innovation into its national development strategy based on its national conditions and development needs. The emission permit system is a typical environmental regulation, and one of the driving forces of green technology innovation. Research into the pollution discharge permits system is a key for improving environmental regulations. This study seeks to investigate the impact of pollution permits system on green innovation in China. Using econometric methods, we constructed and tested the model of green technology innovation incentives based on the emission permits system, and applied it to several Chinese counties and districts. The results revealed shortcomings in implementation of the emission permits system in various counties and districts. From a governmental perspective, this was due to poor standardization of management processes and insufficiently innovative supervisory methods. On the corporate side, problems included poor auditing of law enforcement plans, poor implementation of the ledger system, and a lack of disclosure of pollution data. We propose comprehensive strategies to address these issues. This paper explores the emission reduction potential of the pollution discharge permits system at the county level, in accordance with the Porter hypothesis, and provides reference data for the formulation and optimization of energy conservation and emission reduction policies. This will promote green development of the chemical and other industries, and green technology innovation in China. • We explore the pollution discharge permits system at the county level. • We construct a model of the impact of pollution discharge permits system. • We put forward some strategies for promoting green technology innovation. [ABSTRACT FROM AUTHOR]

In this paper, we explore the effects of China's green credit policy on highly polluting enterprises' green radical and incremental innovations. Utilizing the data of China's listed firms from 2007 to 2019, the empirical results show that green credit policy improves the overall and incremental green innovations but impedes the radical green innovation of highly polluting enterprises. Local governments' interventions, including direct intervention and environmental investment, not only mitigate the negative impact of the policy on radical innovation but also facilitate the positive effects. Our findings provide suggestions for the implementation of China's green credit policy. [ABSTRACT FROM AUTHOR]

Although the existing literature on green innovation has little focus on the mediation role of open innovation, we aimed to explore how intellectual property rights and government support affect green innovation through open innovation. Drawing upon open innovation literature, this paper aims to investigate, at the firm level, the structural causality between internal and external resources and examine the role of open innovation on green innovation divided into green process and green product innovation. We attempt to suggest a structural model comparing open innovation's direct and mediating role using data from manufacturing sectors in South Korea from 2014 to 2016. The methodology was based on the partial least square structural equation method (PLS-SEM) with 1203 samples. The results revealed that a firm's intellectual property rights and government support significantly affect open innovation, green process innovation, and green product innovation while open innovation played a mediating role between each. Additionally, we provide a supplementary analysis using the sample-split test by comparing the sensitivity to partner selection and the multigroup test by firm size. This study proposes several implications emphasizing the mediating role of open innovation in enhancing green process innovation along with the direct and indirect effect of intellectual property rights and government support on green innovation. [ABSTRACT FROM AUTHOR]