Heterogeneous impacts of environmental regulations and foreign direct investment on green innovation across different regions in China

Luo, Yusen; Salman, Muhammad; Lu, Zhengnan

doi:10.1016/j.scitotenv.2020.143744

Cited by 358 publications

(158 citation statements)

References 65 publications

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“…Environmental regulations have an imperative role in firm innovation and Porter [28] provided support for these relationships in 1970. Environmental regulations push firms towards innovative practices which ultimately enhances firm goodwill [27]. The firms use environmental regulations for removing industrial negative effects and green innovative objectives [40].…”

Section: Discussionmentioning

confidence: 99%

“…Researchers have previously expressed the belief that this theory is highly beneficial to measure the firm performance as considering corporate social objectives and sustainable development [26]. Green innovation is an imperative approach to measure the firm sustainable development [27].…”

Section: Theoretical Framework and Hypothesis Constructionmentioning

confidence: 99%

“…Environmental regulations play a vital role in innovative firm practices [28]. Luo, Salman and Lu [27] reported that environmental regulations force companies towards green innovation. Environmental regulations invited firms for green innovation through the decreasing pollution related practices and simultaneously enhancing the production of products.…”

Section: The Moderating Role Of Environmental Regulationsmentioning

confidence: 99%

See 2 more Smart Citations

How Do Proactive Environmental Strategies Affect Green Innovation? The Moderating Role of Environmental Regulations and Firm Performance

Mulaessa

Lin

2021

IJERPH

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Global warming has gained the attention of researchers and authorities to work on the environmental glitches. Prior researchers highlighted that the industrial sector is more responsible for these environmental glitches. The industrial sector is highly participated for climate change problems. In the light of firm’s sustainable development goals, this study focuses on the proactive environmental strategies for green innovation. Furthermore, this study considers the link amid environmental regulations and green innovation, firm performance, and green innovation. Most importantly, this study applies the moderating role of environmental regulations and firm performance on the link amid proactive environmental strategies and green innovation. The outcomes with ordinary least square, fixed effect, generalized method of moments, and feasible generalized least square presents unique conclusions. This study concluded that firms with proactive environmental strategies are more valuable for green innovation practices. The environmental regulations promote green innovative practices. Similarly, firm performance also encourages the firm for green innovative practices. Importantly, these outcomes suggest that environmental regulations positively moderate the link amid proactive environmental strategies and green innovation. In addition, firm performance also plays positive role for positivity amid proactive environmental strategies and green innovation. These findings are imperative addition into the narrow literature of environmental practices at firm level in Pakistan. Moreover, this study suggests various guidelines and directions for policy makers, owners, governments, and stakeholders as promoting the environmental practices for higher profitability as well as minimizing industrial negative effects.

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Section: Discussionmentioning

confidence: 99%

Section: Theoretical Framework and Hypothesis Constructionmentioning

confidence: 99%

Section: The Moderating Role Of Environmental Regulationsmentioning

confidence: 99%

See 1 more Smart Citation

How Do Proactive Environmental Strategies Affect Green Innovation? The Moderating Role of Environmental Regulations and Firm Performance

Mulaessa

Lin

2021

IJERPH

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“…(Chen et al, 2016). From the external perspective of enterprises, institutional factors (Sun et al, 2019), green social capital (Awan et al, 2019), pollution spillover (Luo et al, 2021), and upstream and downstream factors such as customers, suppliers, and markets (Bai et al, 2019) also have an impact on enterprises' green innovation. As for the research on the driving force of green innovation, existing results suggest that reputation mechanism (Zhang and Walton, 2017), government subsidies (Xie et al, 2015), and the pressure of environmental regulation (Cheng, 2020) are the driving force to promote enterprises' green innovation.…”

Section: Literature Reviewmentioning

confidence: 99%

How Information Technology Investment Affects Green Innovation in Chinese Heavy Polluting Enterprises

et al. 2021

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Promoting green innovation is an effective way to solve the increasingly serious environmental pollution problems in emerging economies. Information technology is constantly changing the operation mode of enterprises; however, whether information technology investment helps promote enterprises’ green innovation is still an important issue to be studied. According to resource-based and knowledge integration theory, this study constructs data from Chinese A-share listed heavy polluting enterprises during 2010–2018, adopting the panel data Tobit model to investigate the nexus between information technology investment and green innovation. Our empirical results demonstrate that the amount of information technology investment is positively correlated with the emerging levels of green patents in Chinese heavy polluting enterprises, and this positive correlation only significantly exists in state-owned enterprises (SOEs) and enterprises with a strong sense of environmental responsibility and strict environmental regulation. The findings of this study help understand in depth how information technology investment affects enterprises’ green innovation and its boundaries, which also have important policy implications for government departments and enterprises to make better use of information technology to deal with the challenge of environmental pollution.

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“…The key cause of this discrepancy is differences in research perspectives. Studies that focused on the stringency of environmental regulation requirements [ 7 , 8 ], different types of environmental regulation [ 9 , 10 ] and regional heterogeneity [ 11 , 12 , 13 ] have reached different conclusions. Therefore, the study of environmental regulation and urban innovation capacity has strong practical significance.…”

Section: Introductionmentioning

confidence: 99%

The Spatial Interaction Effect of Environmental Regulation on Urban Innovation Capacity: Empirical Evidence from China

Zhou

Yun-sheng

Xin-cai

2021

IJERPH

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This paper applies a spatial econometric model to measure the impact of environmental regulation on urban innovation capacity from a spatial interaction perspective by using panel data from 41 cities in the Yangtze River Delta urban agglomeration from 2009 to 2018. The study findings are as follows: first, environmental regulation has a significant positive impact on urban innovation capacity and a significant positive spatial spillover effect; second, innovation capacity has significant positive spatial dependence; third, city informatization level, government expenditures on science and technology, city economic scale, and industrial development level all positively affect the innovation capacity of neighboring cities and all have positive spatial spillover effects on the innovation capacity of neighboring cities; and finally, city expansion reduces the innovation capacity of a city and has negative spatial spillover effects on the innovation capacity of neighboring cities.

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Heterogeneous impacts of environmental regulations and foreign direct investment on green innovation across different regions in China

Cited by 358 publications

References 65 publications

How Do Proactive Environmental Strategies Affect Green Innovation? The Moderating Role of Environmental Regulations and Firm Performance

How Do Proactive Environmental Strategies Affect Green Innovation? The Moderating Role of Environmental Regulations and Firm Performance

How Information Technology Investment Affects Green Innovation in Chinese Heavy Polluting Enterprises

The Spatial Interaction Effect of Environmental Regulation on Urban Innovation Capacity: Empirical Evidence from China

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