Carbon emissions and firm innovation

Huang, Zhongdong; Yang, Xiandong

doi:10.1016/j.eap.2021.01.009

Cited by 13 publications

(10 citation statements)

References 63 publications

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“…First, we provide additional empirical evidence regarding the two opposing sides of the ongoing debate on the positive or negative effects of CICP. While some scholars argue for the positive policy effects of the CICP (Zhang et al, 2013;Tan et al, 2020), others contend that it has adverse consequences (Huang and Yang, 2021;Yang et al, 2017;Yao et al, 2019). By considering the decentralization and the environmental target responsibility system in China's institutional framework, our study uses the quasi-DID method and continuous variables to quantify the negative effect of the CICP on firm green innovation.…”

Section: Carbon Intensity Constraint Policymentioning

confidence: 99%

“…As a result, environmental regulations demonstrably hinder technological innovation and compromise firms' competitiveness (Albrizio et al, 2017). Huang and Yang (2021), for example, show that implementation of the CICP increases operating costs related to production technology, resource allocation and consumer demand, thereby forcing firms to modify their production decisions, which in turn reduces operating profits and discourages innovation. If firms cannot quickly reduce the costs associated with environmental regulation or find alternative means to alleviate compliance pressure, they may not invest in green innovation.…”

Section: Hypothesis Development: Carbon Intensity Constraint Policy A...mentioning

confidence: 99%

“…The parallel trend assumptionthat the dependent variables should have the same trend in the treatment and control groups before the policy interventionneeds to be satisfied before the DID method can be used. In this subsection, we draw on the studies of Yang et al (2017), andYang (2021), and set up the following regression model to verify whether the number of firm green patent applications have different time trends prior to the implementation of the CICP:…”

Section: Parallel Trend Testmentioning

confidence: 99%

“…(2017). Additional studies have shown that the introduction of the CICP has led to measurable decreases in profits, competitiveness and innovation investment for enterprises (Huang and Yang, 2021), as well as adverse effects on China’s overall economy (Wang et al. , 2015).…”

Section: Introductionmentioning

confidence: 99%

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Carbon intensity constraint policy and firm green innovation in China: a quasi-DID analysis

Xu,

Ye,

2024

SAMPJ

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Purpose This paper aims to empirically investigate the impact of the carbon intensity constraint policy (CICP) on green innovation. Design/methodology/approach This study takes the implementation of the CICP as a quasi-natural experiment and uses a quasi–difference-in-difference method to investigate the impact of the CICP on firm green innovation from a microeconomic perspective. Findings The CICP significantly limits the quality of firms’ green innovation. Among the range of green patents, the CICP distorts only patents related to CO2 emissions. The inhibitory effect is more pronounced in non-state-owned enterprises and heavily polluting firms. R&D investment and green investor are identified as the main mechanism. Practical implications These findings provide evidence for the influence of the CICP on firm green innovation, which can guide policymakers in China and other emerging economies that prioritize carbon intensity constraint targets and the improvement of relevant auxiliary measures. Social implications Governments and firms should have a comprehensive understanding of environmental policies and corporate behavior and need to mitigate the negative impact through a combination of measures. Originality/value This study contributes to the literature by providing additional empirical evidence regarding the two opposing sides of the ongoing debate on the positive or negative effects of CICP. It also provides new evidence on the policy effect of the CICP on firm green innovation, together with its mechanisms and heterogeneous influences.

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Section: Carbon Intensity Constraint Policymentioning

confidence: 99%

Section: Hypothesis Development: Carbon Intensity Constraint Policy A...mentioning

confidence: 99%

Section: Parallel Trend Testmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Carbon intensity constraint policy and firm green innovation in China: a quasi-DID analysis

Xu,

Ye,

2024

SAMPJ

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“…They suggested that the carbon emissions trading scheme pilot project only motivated enterprises to reduce the production output but not increase the technological innovation investment to reduce emissions. Huang and Yang [ 31 ] conducted an empirical study, which showed that the emissions trading scheme dramatically increased the investment in research and development for large-scale enterprises in the pilot industries of the pilot regions.…”

Section: Literature Reviewmentioning

confidence: 99%

[Retracted] Influence of China’s Carbon Emissions Trading Scheme on Green Innovation of Enterprises

Zha

Peng

et al. 2022

Journal of Environmental and Public Health

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China’s economic growth has entered “new normal,” and the task of reducing carbon emissions has become more onerous. Hence, this study aimed to explore whether China’s carbon emissions trading pilot policy stimulated corporate green innovation capabilities. The data pertained to the green patent data of the listed companies in Shanghai and Shenzhen stock exchanges during 2008–2018. Using a difference-in-difference-in-differences (DDD) method, the study took advantage of the variations across regions, across enterprises, and across years and obtained several novel findings. First, the pilot carbon emissions trading policy significantly stimulated the green innovation capabilities of emission control companies in the pilot areas compared with enterprises in nonpilot areas and the nonemission control list. Second, the effect of the policy on the improvement in corporate green innovation capabilities might be driven by the improvement in corporate input factor allocation efficiency and the additional benefits that could be obtained from the carbon trading market. Third, the positive effect of the policy on the green innovation capabilities of state-owned enterprises was more significant. Therefore, the establishment and promotion of a unified national carbon emissions trading market and supporting mechanisms should be accelerated to achieve the balance of stable economic growth and carbon emission task.

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Information acquisition or just going through the motions? Institutional investors' site visits and green innovation

Shi,

Wang

2024

Corp Soc Responsibility Env

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The importance of green innovation in global sustainable development is increasingly recognized. Literature has documented that enhancing external oversight can improve green innovation performance. However, few studies systematically investigate the relationship between external supervisory behavior and green innovation. This study employs a game‐theoretic model to examine the relationship between institutional investors' site visits (SVs) and green innovation. Using a unique dataset covering SVs from 2012 to 2021, empirical findings reveal that institutional investors' SVs are dramatically favorable to green innovation performance, particularly among stress‐resistant institutional investors. More broadly, SVs by institutional investors with higher shareholdings and stronger reputations exhibit a substantial response to green innovation. Similarly, institutional investors' SVs significantly boost the green innovation of firms with inadequate environmental disclosure. Additional analysis documents that the quality improvement of green innovation significantly increases after institutional investors conduct more than three SVs in a calendar year. This study proposes that policymakers should improve the institutional environment for site visits, and enterprises can strategically involve institutional investors to enhance external monitoring mechanisms. The theoretical and practical implications of this contribute to boosting green innovation capabilities.

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Carbon emissions and firm innovation

Cited by 13 publications

References 63 publications

Carbon intensity constraint policy and firm green innovation in China: a quasi-DID analysis

Carbon intensity constraint policy and firm green innovation in China: a quasi-DID analysis

[Retracted] Influence of China’s Carbon Emissions Trading Scheme on Green Innovation of Enterprises

Information acquisition or just going through the motions? Institutional investors' site visits and green innovation

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