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Journal ArticleDOI

Environmental Regulations and Corporate Green Innovation in China: The Role of City Leaders' Promotion Pressure.

TL;DR: Zhang et al. as mentioned in this paper discussed the relationship between environmental regulations and corporate green innovation from the perspective of regional leaders' promotion pressure and showed that direct policy regulation within the region stimulates green innovation on the part of enterprises.
Abstract: China and other emerging market countries have suffered from the problem of environmental pollution while developing rapidly in the past few decades. In recent years, many countries have introduced strict environmental regulations in order to achieve sustainable development. This paper discusses the relationship between environmental regulations and corporate green innovation from the perspective of regional leaders’ promotion pressure. The empirical results show that direct policy regulation within the region stimulates green innovation on the part of enterprises, and the promotion pressure of city leaders has a further positive moderating effect on the positive correlation between environmental regulations and enterprises’ green innovation. The conclusion of the study proves that a strict environmental policy can promote the effectiveness of an environmental performance appraisal system in the sustainable development plans of cities and enterprises. This paper not only reveals the influence path of official promotion pressure on the sustainable development of enterprises in the administrative area from the micro perspective but also sheds some light that may improve government governance and promote the transformation of enterprises.
Citations
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Journal ArticleDOI
TL;DR: Wang et al. as mentioned in this paper used the epsilon-based measure model and entropy method to measure the total factor rate of green economy and the development level of green finance in 30 provinces in China from 2009 to 2019, and empirically tested the action mechanism and constraints between green finance and high-quality economic development.
Abstract: Exploring the mechanism and constraints of Green Finance on high-quality economic development is of great significance to achieve the strategic goal of carbon peak and carbon neutral. Based on the panel data of 30 provinces in China from 2009 to 2019, this paper uses the epsilon-based measure model and entropy method to measure the total factor rate of green economy and the development level of green finance. It then brings green finance, technological innovation, industrial structure upgrading, environmental supervision and high-quality economic development into a unified research framework for the first time. By constructing a panel two-way fixed effect model, regulatory intermediary effect model and threshold effect model, this paper empirically tests the action mechanism and constraints between green finance and high-quality economic development. The results show that: (1) The spatial evolution of green finance in China presents a gradient decreasing pattern from east to middle to west, coastal to inland, and the spatial evolution presents an obvious southwest-northeast pattern. (2) Green finance does have a significant role in promoting high-quality economic development, in which technological innovation and industrial structure upgrading play a part of the intermediary role. This conclusion is still valid under the robustness test of lagged explanatory variables and after the possible endogenous problems are alleviated by the difference-in-difference model (DID). (3) Environmental regulation plays a non-linear regulatory role in the relationship between green finance and high-quality economic development, and there is a single threshold value. Too high intensity of environmental regulation will weaken green finance, resulting in the innovation compensation effect being more diminutive than the circular cost effect. At this time, the high-quality economic development presents a state of diminishing marginal benefits.

35 citations

Journal ArticleDOI
TL;DR: In this article, the authors explored the impact of heterogeneous environmental regulations on firms' green innovation from the perspective of economic policy uncertainty as a moderating variable and found that market-incentivized environmental regulation instruments have an inverted U-shaped relationship with innovation output, while voluntary environmental regulation produces a significant positive impact.
Abstract: As the continuous changes in environmental regulations have a non-negligible impact on the innovation activities of micro subjects, and economic policy uncertainty has become one of the important influencing factors to be considered in the development of enterprises. Therefore, based on the panel data of Chinese high-tech enterprises from 2012–2017, this paper explores the impact of heterogeneous environmental regulations on firms’ green innovation from the perspective of economic policy uncertainty as a moderating variable. The empirical results show that, first, market-incentivized environmental regulation instruments have an inverted U-shaped relationship with innovation output, while voluntary environmental regulation produces a significant positive impact. Second, the U-shaped relationship between market-based environmental regulation and innovation output becomes more pronounced when economic policy uncertainty is high. However, it plays a negative moderating role in regulating the relationship between voluntary-based environmental regulation and innovation output. This paper not only illustrates the process of technological innovation by revealing the intrinsic mechanism of environmental regulation on firm innovation, but also provides insights for government in environmental governance from the perspective of economic policy uncertainty as well.

25 citations

Journal ArticleDOI
TL;DR: Using the ecological civilization demonstration zone as a quasi-natural experiment, this article explored the effect of it on air pollution in China by employing the difference-in-differences model and the spatial difference in-difference model.
Abstract: Using the ecological civilization demonstration zone as a quasi-natural experiment, this study has explored the effect of it on air pollution in China by employing the difference-in-differences model and the spatial difference-in-differences model, and further tested the political promotion tournament in China by employing the binary logit model. The results show that the ecological civilization demonstration zone has basically and effectively reduced air pollution, except for carbon monoxide and ozone. In addition, the spatial spillover effects of the ecological civilization demonstration zone on air pollution are not only basically supported among the treated cities, but also extremely established in the untreated cities neighboring the treated cities. Furthermore, no clear evidence supports the establishment of the political promotion tournament in China, while local cadres tend to cope with the assessment of higher officials passively rather than actively. Overall, this study sheds light on the coordination of economic development and ecological civilization from the perspective of the career concerns of local cadres.

7 citations

References
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Journal ArticleDOI
TL;DR: In this article, the authors argue that the trade-off between environmental regulation and competitiveness unnecessarily raises costs and slows down environmental progress, and that instead of simply adding to cost, properly crafted environmental standards can trigger innovation offsets, allowing companies to improve their resource productivity.
Abstract: Accepting a fixed trade-off between environmental regulation and competitiveness unnecessarily raises costs and slows down environmental progress. Studies finding high environmental compliance costs have traditionally focused on static cost impacts, ignoring any offsetting productivity benefits from innovation. They typically overestimated compliance costs, neglected innovation offsets, and disregarded the affected industry's initial competitiveness. Rather than simply adding to cost, properly crafted environmental standards can trigger innovation offsets, allowing companies to improve their resource productivity. Shifting the debate from pollution control to pollution prevention was a step forward. It is now necessary to make the next step and focus on resource productivity.

8,154 citations

Journal ArticleDOI
TL;DR: The cross-sectional problem is logically prior to a consideration of dynamics, and better understood, and three promising streams of research that address the longitudinal problem still fall short of exposing the true origins of competitive success.
Abstract: This paper reviews the progress of the strategy field towards developing a truly dynamic theory of strategy. It separates the theory of strategy into the causes of superior performance at a given period in time (termed the cross-sectional problem) and the dynamic process by which competitive positions are created (termed the longitudinal problem). The cross-sectional problem is logically prior to a consideration of dynamics, and better understood. The paper then reviews three promising streams of research that address the longitudinal problem. These still fall short of exposing the true origins of competitive success. One important category of these origins, the local environment in which a firm is based, is described. Many questions remain unanswered, however, and the paper concludes with challenges for future research.

3,780 citations

Journal ArticleDOI
TL;DR: Weak instruments arise when the instruments in linear instrumental variables (IV) regression are weakly correlated with the included endogenous variables as discussed by the authors, and weak instruments correspond to weak identification of some or all of the unknown parameters.
Abstract: Weak instruments arise when the instruments in linear instrumental variables (IV) regression are weakly correlated with the included endogenous variables. In generalized method of moments (GMM), more generally, weak instruments correspond to weak identification of some or all of the unknown parameters. Weak identification leads to GMM statistics with nonnormal distributions, even in large samples, so that conventional IV or GMM inferences are misleading. Fortunately, various procedures are now available for detecting and handling weak instruments in the linear IV model and, to a lesser degree, in nonlinear GMM.

3,038 citations

Journal ArticleDOI
TL;DR: Li et al. as mentioned in this paper provided empirical evidence on the incentive role of personnel control in post-reform China by employing the turnover data of top provincial leaders in China between 1979 and 1995.

2,249 citations

Journal ArticleDOI
TL;DR: In this paper, the authors examined the relations between earnings informativeness, measured by the earnings-return relation, and the ownership structure of 977 companies in seven East Asian economies and found that concentrated ownership is associated with low earnings informattiveness as ownership concentration prevents leakage.

1,486 citations