“…Green innovation is the process of promoting and improving products or production in energy conservation, pollution prevention, waste recycling, green product design, and environmental management (Chang, 2011; Chen, 2008; Martínez‐Ros & Kunapatarawong, 2019), which is a win‐win solution for firms to reduce the conflict between economic development and environmental protection (Bhatia, 2021; Hao et al, 2022). On the one hand, green innovation can help firms realize environmental benefits, such as saving energy, reducing carbon dioxide emission, and improving product recovery rate (Zhang et al, 2020); on the other hand, green innovation is beneficial for firms to increase economic benefits by promoting green production capacity, improving firms' image, and gaining customer recognition (Huang et al, 2022; Wang, 2020). Therefore, green innovation is an important strategy for firms to achieve sustainable development.…”