IDEAS home Printed from https://ideas.repec.org/a/gam/jijerp/v19y2022i16p9781-d883531.html
   My bibliography  Save this article

Environmental Uncertainty, Environmental Regulation and Enterprises’ Green Technological Innovation

Author

Listed:
  • Jinyong Chen

    (Business School, Hubei University, Wuhan 430000, China)

  • Xiaochi Wang

    (Business School, Hubei University, Wuhan 430000, China)

  • Wan Shen

    (Business School, Hubei University, Wuhan 430000, China)

  • Yanyan Tan

    (Accounting School, Zhongnan University of Economics and Law, Wuhan 430073, China)

  • Liviu Marian Matac

    (Department of Accounting and Audit, Bucharest University of Economic Studies, 010374 Bucharest, Romania)

  • Sarminah Samad

    (Department of Business Administration, College of Business and Administration, Princess Nourah bint Abdulrahman University, Riyadh 11671, Saudi Arabia)

Abstract

This paper examines the impact of environmental uncertainty and environmental regulation on enterprises’ green technological innovation, using a panel data of Chinese A-share listed companies in Shanghai and Shenzhen from 2005 to 2019 to conduct an empirical study using an OLS model and Poisson regression model. We employ environmental complexity and environmental dynamism to measure environmental uncertainty, and we have the following findings: first, both environmental uncertainty and environmental regulation promote enterprises’ green technological innovation, while environmental regulation has positive moderating effects on the relationship between environmental uncertainty and enterprises’ green technological innovation; second, environmental complexity positively affects enterprises’ green technological innovation, while environmental dynamism has negative effects on enterprises’ green technological innovation; third, environmental regulation accentuates the relationship between environmental complexity and green technological innovation, while it weakens the relationship between environmental dynamism and green technological innovation.

Suggested Citation

  • Jinyong Chen & Xiaochi Wang & Wan Shen & Yanyan Tan & Liviu Marian Matac & Sarminah Samad, 2022. "Environmental Uncertainty, Environmental Regulation and Enterprises’ Green Technological Innovation," IJERPH, MDPI, vol. 19(16), pages 1-28, August.
  • Handle: RePEc:gam:jijerp:v:19:y:2022:i:16:p:9781-:d:883531
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1660-4601/19/16/9781/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/1660-4601/19/16/9781/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ouyang, Xiaoling & Li, Qiong & Du, Kerui, 2020. "How does environmental regulation promote technological innovations in the industrial sector? Evidence from Chinese provincial panel data," Energy Policy, Elsevier, vol. 139(C).
    2. Don Fullerton & Gilbert E. Metcalf, 2002. "Environmental Controls, Scarcity Rents, and Pre-existing Distortions," Chapters, in: Lawrence H. Goulder (ed.), Environmental Policy Making in Economies with Prior Tax Distortions, chapter 26, pages 504-522, Edward Elgar Publishing.
    3. Tarek A Hassan & Stephan Hollander & Laurence van Lent & Ahmed Tahoun, 2019. "Firm-Level Political Risk: Measurement and Effects," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 134(4), pages 2135-2202.
    4. Philippe Aghion & Nick Bloom & Richard Blundell & Rachel Griffith & Peter Howitt, 2005. "Competition and Innovation: an Inverted-U Relationship," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 120(2), pages 701-728.
    5. Song, Malin & Du, Juntao & Tan, Kim Hua, 2018. "Impact of fiscal decentralization on green total factor productivity," International Journal of Production Economics, Elsevier, vol. 205(C), pages 359-367.
    6. Scott R. Baker & Nicholas Bloom & Steven J. Davis, 2016. "Measuring Economic Policy Uncertainty," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 131(4), pages 1593-1636.
    7. Clara Villegas-Palacio & Jessica Coria, 2010. "On the interaction between imperfect compliance and technology adoption: taxes versus tradable emissions permits," Journal of Regulatory Economics, Springer, vol. 38(3), pages 274-291, December.
    8. Dani Rodrik & Arvind Subramanian & Francesco Trebbi, 2004. "Institutions Rule: The Primacy of Institutions Over Geography and Integration in Economic Development," Journal of Economic Growth, Springer, vol. 9(2), pages 131-165, June.
    9. Faucheux, Sylvie & Nicolai, Isabelle, 1998. "Environmental technological change and governance in sustainable development policy," Ecological Economics, Elsevier, vol. 27(3), pages 243-256, December.
    10. Tian, Yanping & Song, Wenjing & Liu, Min, 2021. "Assessment of how environmental policy affects urban innovation: Evidence from China’s low-carbon pilot cities program," Economic Analysis and Policy, Elsevier, vol. 71(C), pages 41-56.
    11. Wang, Xiaozhen & Zou, Honghui, 2018. "Study on the effect of wind power industry policy types on the innovation performance of different ownership enterprises: Evidence from China," Energy Policy, Elsevier, vol. 122(C), pages 241-252.
    12. Zhang, Dongyang & Guo, Yumei & Wang, Zhaorui & Chen, Yanbin, 2020. "The impact of US monetary policy on Chinese enterprises’ R&D investment," Finance Research Letters, Elsevier, vol. 35(C).
    13. Orsatti, Gianluca & Quatraro, Francesco & Pezzoni, Michele, 2020. "The antecedents of green technologies: The role of team-level recombinant capabilities," Research Policy, Elsevier, vol. 49(3).
    14. Rogge, Karoline S. & Schneider, Malte & Hoffmann, Volker H., 2011. "The innovation impact of the EU Emission Trading System -- Findings of company case studies in the German power sector," Ecological Economics, Elsevier, vol. 70(3), pages 513-523, January.
    15. Huseyin Gulen & Mihai Ion, 2016. "Editor's Choice Policy Uncertainty and Corporate Investment," The Review of Financial Studies, Society for Financial Studies, vol. 29(3), pages 523-564.
    16. Cui, Xin & Wang, Chunfeng & Liao, Jing & Fang, Zhenming & Cheng, Feiyang, 2021. "Economic policy uncertainty exposure and corporate innovation investment: Evidence from China," Pacific-Basin Finance Journal, Elsevier, vol. 67(C).
    17. Ghosh, Dipankar & Olsen, Lori, 2009. "Environmental uncertainty and managers' use of discretionary accruals," Accounting, Organizations and Society, Elsevier, vol. 34(2), pages 188-205, February.
    18. Walter, Jason M. & Chang, Yang-Ming, 2020. "Environmental policies and political feasibility: Eco-labels versus emission taxes," Economic Analysis and Policy, Elsevier, vol. 66(C), pages 194-206.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hongxia Zhao & Guangming Xu & Lu Liu & Changchun Shi & Huijuan Zhao, 2023. "Low-Carbon Technology Innovation Decision Making of Manufacturing Companies in the Industrial Internet Platform Ecosystem," Sustainability, MDPI, vol. 15(4), pages 1-17, February.
    2. Chuantang Ren & Tao Wang & Yue Wang & Yizhen Zhang & Luwei Wang, 2023. "The Heterogeneous Effects of Formal and Informal Environmental Regulation on Green Technology Innovation—An Empirical Study of 284 Cities in China," IJERPH, MDPI, vol. 20(2), pages 1-17, January.
    3. Weize Sun & Mingtao Yu & Haotian Zhang & Yifan Zhang, 2022. "Does Uncertainty of Trade Environment Promote Green Technological Innovation? Empirical Evidence from China," Sustainability, MDPI, vol. 14(23), pages 1-22, December.
    4. Hua Zhang & Shaofeng Yuan, 2023. "How and When Does Big Data Analytics Capability Boost Innovation Performance?," Sustainability, MDPI, vol. 15(5), pages 1-19, February.
    5. Yang, Ya & Zhou, Mengru & Hou, Yawei & Tang, Run & Liu, Bo & Deng, Yue, 2023. "Examining the impacts of implicit economic policy on urban environmental pollution: Unveiling pathways for sustainable recovery," Resources Policy, Elsevier, vol. 85(PA).
    6. Ying Ying & Shanyue Jin, 2024. "Impact of Environmental Regulation on Corporate Green Technological Innovation: The Moderating Role of Corporate Governance and Environmental Information Disclosure," Sustainability, MDPI, vol. 16(7), pages 1-17, April.
    7. Shanshan Gao & Wenqi Li & Jiayi Meng & Jianfeng Shi & Jianhua Zhu, 2023. "A Study on the Impact Mechanism of Digitalization on Corporate Green Innovation," Sustainability, MDPI, vol. 15(8), pages 1-21, April.
    8. Shuying Li & Yujie Liu & Yang Xu, 2022. "Does ESG Performance Improve the Quantity and Quality of Innovation? The Mediating Role of Internal Control Effectiveness and Analyst Coverage," Sustainability, MDPI, vol. 15(1), pages 1-25, December.
    9. Xiumei Xu & Ruolan Jing & Feifei Lu, 2022. "Environmental Regulation, Corporate Social Responsibility (CSR) Disclosure and Enterprise Green Innovation: Evidence from Listed Companies in China," IJERPH, MDPI, vol. 19(22), pages 1-24, November.
    10. Hua Feng & Fengyan Wang & Guomin Song & Lanlan Liu, 2022. "Digital Transformation on Enterprise Green Innovation: Effect and Transmission Mechanism," IJERPH, MDPI, vol. 19(17), pages 1-31, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Cui, Xin & Wang, Chunfeng & Sensoy, Ahmet & Liao, Jing & Xie, Xiaochen, 2023. "Economic policy uncertainty and green innovation: Evidence from China," Economic Modelling, Elsevier, vol. 118(C).
    2. Alam, Ahmed W. & Farjana, Ashupta & Houston, Reza, 2023. "Firm investment steering through state-level policy uncertainty," Finance Research Letters, Elsevier, vol. 58(PC).
    3. Li, Kaifeng & Xia, Bobo & Chen, Yun & Ding, Ning & Wang, Jie, 2021. "Environmental uncertainty, financing constraints and corporate investment: Evidence from China," Pacific-Basin Finance Journal, Elsevier, vol. 70(C).
    4. Suyi Zheng & Jiandong Wen, 2023. "How Does Firm-Level Economic Policy Uncertainty Affect Corporate Innovation? Evidence from China," Sustainability, MDPI, vol. 15(7), pages 1-23, April.
    5. Zhu, Zhaohui & Tan, Yafei, 2022. "Can green industrial policy promote green innovation in heavily polluting enterprises? Evidence from China," Economic Analysis and Policy, Elsevier, vol. 74(C), pages 59-75.
    6. Wang, Fengrong & Mbanyele, William & Muchenje, Linda, 2022. "Economic policy uncertainty and stock liquidity: The mitigating effect of information disclosure," Research in International Business and Finance, Elsevier, vol. 59(C).
    7. Weilong Wang & Jianlong Wang & Shaersaikai Wulaer & Bing Chen & Xiaodong Yang, 2021. "The Effect of Innovative Entrepreneurial Vitality on Economic Resilience Based on a Spatial Perspective: Economic Policy Uncertainty as a Moderating Variable," Sustainability, MDPI, vol. 13(19), pages 1-23, September.
    8. Matias Braun & Sebastián Bustos & Luis Felipe Céspedes, 2021. "Innovation Strategy and Economic Development," Working Papers 590, Center for Global Development.
    9. Shang, Longfei & Lin, Ji-Chai & Saffar, Walid, 2021. "Does economic policy uncertainty drive the initiation of corporate lobbying?," Journal of Corporate Finance, Elsevier, vol. 70(C).
    10. Fiori, Giuseppe & Scoccianti, Filippo, 2023. "The economic effects of firm-level uncertainty: Evidence using subjective expectations," Journal of Monetary Economics, Elsevier, vol. 140(C), pages 92-105.
    11. Vo, Hong & Trinh, Quoc-Dat & Le, Minh & Nguyen, Thuy-Ngan, 2021. "Does economic policy uncertainty affect investment sensitivity to peer stock prices?," Economic Analysis and Policy, Elsevier, vol. 72(C), pages 685-699.
    12. Mo Chen & Xuhua Hu & Jijian Zhang & Zhe Xu & Guang Yang & Zenan Sun, 2023. "Are Firms More Willing to Seek Green Technology Innovation in the Context of Economic Policy Uncertainty? —Evidence from China," Sustainability, MDPI, vol. 15(19), pages 1-24, September.
    13. Hasan, Mostafa Monzur & Jiang, Haiyan, 2023. "Political sentiment and corporate social responsibility," The British Accounting Review, Elsevier, vol. 55(1).
    14. Cui, Xin & Wang, Chunfeng & Liao, Jing & Fang, Zhenming & Cheng, Feiyang, 2021. "Economic policy uncertainty exposure and corporate innovation investment: Evidence from China," Pacific-Basin Finance Journal, Elsevier, vol. 67(C).
    15. Liu, Tingli & Chen, Xiao & Yang, Songling, 2022. "Economic policy uncertainty and enterprise investment decision: Evidence from China," Pacific-Basin Finance Journal, Elsevier, vol. 75(C).
    16. Tran, Dung Viet & Nguyen, Cuong, 2023. "Policy uncertainty and bank’s funding costs: The effects of the financial crisis, Covid-19 pandemic, and market discipline," Research in International Business and Finance, Elsevier, vol. 65(C).
    17. Chada, Swechha, 2023. "Economic policy uncertainties and institutional ownership in India," The Journal of Economic Asymmetries, Elsevier, vol. 27(C).
    18. Wang, Liang & Wang, Qikai & Jiang, Fan, 2023. "Booster or stabilizer? Economic policy uncertainty: New firm-specific measurement and impacts on stock price crash risk," Finance Research Letters, Elsevier, vol. 51(C).
    19. Duan, Yuejiao & Fan, Xiaoyun & Wang, Yu, 2022. "Economic policy uncertainty and bank systemic risk: A cross-country analysis," Pacific-Basin Finance Journal, Elsevier, vol. 75(C).
    20. Pattanaporn Chatjuthamard & Sirimon Treepongkaruna & Pornsit Jiraporn & Napatsorn Jiraporn, 2021. "Does firm‐level political risk influence corporate social responsibility (CSR)? Evidence from earnings conference calls," The Financial Review, Eastern Finance Association, vol. 56(4), pages 721-741, November.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jijerp:v:19:y:2022:i:16:p:9781-:d:883531. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.