Can Companies Make Green Innovation a Reality by Means of Corporate Environmental Responsibility? The Mediating Role of Environmental Subsidies

Abstract

This paper analyses how Chinese listed companies have channelled their environmental responsibility through government resources by observing corporate behaviour between 2015 and 2020. Results indicate that corporate environmental responsibility does not directly enhance corporate green innovation (CGI) and that government environmental subsidies (ES) are required to positively incentivise CGI capabilities. Increased corporate investment in environmental protection and improved governance are positive for CGI, unlike environmental management system certification. This paper provides novel ideas for future research on how Chinese listed companies may convert their environmental responsibility into green innovation through government ES. This may benefit future research on sustainable development.

Economic Policy Uncertainty and Corporate Investment Efficiency: Evidence from Australian Energy Companies

“…I choose the energy sector as firms in this sector have a great need for capital spending for large investment projects and face more uncertainty in terms of investment and financing risks. For example, low-carbon investments and research and development into green energy technologies are capital-intensive projects (Bosetti et al, 2011;Fuss et al, 2011;Yu et al, 2022). Firms may have to postpone these investments if they cannot mobilize needed funds.…”