Can voluntary environmental regulation promote corporate technological innovation?

Jiang, Zhenyu; Wang, Zongjun; Zeng, Yanqi

doi:10.1002/bse.2372

Cited by 145 publications

(81 citation statements)

References 75 publications

(132 reference statements)

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“…7 The endogenous problem between dependent variable and independent variable caused by reverse causality can be effectively solved by constructing the industry mean of endogenous variable as the instrumental variable (Svensson & Fisman, 2007;Larcker & Rusticus, 2008). Thus, we selected the industry mean of the scores of ED (IMED) as the instrumental variable for ED following Jiang et al (2019). There was a strong correlation between the IMED and ED.…”

Section: Further Analysis: Discussion On Endogenous Problemsmentioning

confidence: 99%

“…Apart from these factors at the firm level, the external environment of the firms also has an effect on innovation. Regional economic level might have an impact on the innovation behavior of local firms (Jiang, Wang, & Zeng, 2019). Therefore, the natural logarithm of per capita gross domestic product (lnGDP) of the province where a firm located was selected as a control variable.…”

Section: Methodsmentioning

confidence: 99%

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Confession or justification: The effects of environmental disclosure on corporate green innovation in China

Xiang

Liu

Yang

et al. 2020

Corp Soc Responsibility Env

119

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As one type of voluntary environmental regulations, environmental disclosure plays an important role in promoting sustainable development of enterprises by enhancing their environmental awareness. Based on the social responsibility and annual reports published by heavily polluting listed companies in China between 2007 and 2016, this article investigates their environmental disclosure and assesses the impact on their green innovation activities as well as its influence mechanisms. Text analysis is used to measure the environmental disclosure by way of three dimensions including environmental investment and management, environmental supervision and agency certification, and environmental performance and governance. The results of the Poisson regression model for panel data show that environmental disclosure has significantly encouraged green innovations carried out by heavily polluting listed companies in China during the past decade and this result is consistent with a variety of robustness checks. Besides, the mediation effect test demonstrates that environmental disclosure stimulated green innovations of heavily polluting listed companies by expanding their financing channels, promoting their product sales, and raising media attention.

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Section: Further Analysis: Discussion On Endogenous Problemsmentioning

confidence: 99%

Section: Methodsmentioning

confidence: 99%

Confession or justification: The effects of environmental disclosure on corporate green innovation in China

Xiang

Liu

Yang

et al. 2020

Corp Soc Responsibility Env

119

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“…These findings inform our understanding of the dynamic outcomes of voluntary, environmental, and self‐regulatory programs more broadly. The finding that symbolic certification became less likely as LEED diffused affirms that early adopters drive market transformation by revealing benefits to substantive adoption of new environmental technology (Blackburn et al, 2020; Jiang et al, 2020; Maxwell et al, 2000). Further, we note that the USGBC actively cultivates a network of associated professionals through trainings and online platforms that showcase advances from the United States and around the world.…”

Section: Discussionmentioning

confidence: 88%

In the LEED: Racing to the Top in Environmental Self‐Regulation

2020

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Does voluntary participation in eco‐certification become more substantive over time, or less? Although past research on voluntary programs suggests that later participants are more likely to greenwash by only symbolically adopting voluntary standards, theories of regulatory competition suggest a possible “race to the top.” We argue that participation in voluntary programs can facilitate competition that enables a race, and we advance a theory of self‐regulatory competition to explain dynamics of participation in voluntary environmental programs. Under this perspective, environmental self‐regulation may facilitate a race to the top, despite possibilities for purely symbolic adoption. Analyzing data from a voluntary green building certification program in the United States, we introduce a methodology to distinguish propensities for symbolic certification from more substantive environmental performance. Data demonstrate that later adopters invest additional resources to attain higher certification, becoming greener and suggesting a race to the top in a voluntary greenbuilding certification program.

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“…TI plays a crucial role in the coordinated development between economic development and environmental protection [12,13]. Hence, it is important for firms to improve their innovation capability and efficiency.…”

Section: A Brief Overview Of Regulations and Innovation In The Chinesmentioning

confidence: 99%

“…Under this circumstance, the win-win situation can be achieved. Hence, determining whether ERs can stimulate TI or not is the key for enabling the win-win situation between economic development and environmental protection [12,13].…”

Section: Introductionmentioning

confidence: 99%

Opening the Black Box: The Impacts of Environmental Regulations on Technological Innovation

Zhang

Ramanathan

et al. 2020

IJERPH

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Environmental regulations (ERs) that can stimulate technological innovation (TI) are the key to enabling a win-win strategy that benefits both economic development and environmental protection. This study seeks to analyze the impacts of ERs on TI. Previous literature highlighted that the black box of TI can be decomposed into technology investment and technology transformation, but empirical studies on such a decomposition have largely been ignored. Moreover, a detailed discussion of the links between ERs and the decomposed components of TI has not been conducted in developing countries such as China. Our study attempts to address these research gaps by (i) decomposing TI using a novel data envelopment analysis (DEA) procedure and further analyzing the impacts of ERs on the decomposed components of TI and (ii) applying this novel methodology to Chinese context. Accordingly, this study is conducted in two stages. First, a novel application of the slack-based measure Network DEA model is developed to uncover the black box of TI using Chinese data in order to estimate the overall efficiency of technological innovation (TIE) and to decompose it into the efficiency of technology investment (TVE) and the efficiency of technology transformation (TTE). Second, a random effect Tobit model is applied to (i) investigate both the linear and nonlinear impacts of ERs on TIE in all sectors and (ii) examine whether the impacts of ERs on TVE and TTE in different subprocesses are heterogeneous or not. Our results have showed the benefits of decomposing TI: while technology transformation in China closely follows the trend of TI, the trend of technology investment is somewhat different. The estimation results further indicate that the impacts of ERs on TIE are nonlinear. Besides, ERs have heterogeneous impacts on the decomposed components of TI. The impacts of ERs on TVE are nonlinear, whereas the impacts of ERs on TTE are statistically insignificant.

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Can voluntary environmental regulation promote corporate technological innovation?

Cited by 145 publications

References 75 publications

Confession or justification: The effects of environmental disclosure on corporate green innovation in China

Confession or justification: The effects of environmental disclosure on corporate green innovation in China

In the LEED: Racing to the Top in Environmental Self‐Regulation

Opening the Black Box: The Impacts of Environmental Regulations on Technological Innovation

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