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Can Companies Make Green Innovation a Reality by Means of Corporate Environmental Responsibility? The Mediating Role of Environmental Subsidies

Author

Listed:
  • Li Shi Yu

    (School of Business and Economics, Universiti Putra Malaysia, 43400 UPM Serdang Selangor Darul Ehsan, Malaysia; Department of Accounting and Finance, Anhui Xinhua University, 230088 Anhui, China,)

  • Ao Xiangyuan

    (School of Business and Economics, Universiti Putra Malaysia, 43400 UPM Serdang Selangor Darul Ehsan, Malaysia,)

  • Ong Tze San

    (School of Business and Economics, Universiti Putra Malaysia, 43400 UPM Serdang Selangor Darul Ehsan, Malaysia; Department of Business Administration, Daffodil International University, Dhaka, Bangladesh,)

  • Chen Anqi

    (School of Business and Economics, Universiti Putra Malaysia, 43400 UPM Serdang Selangor Darul Ehsan, Malaysia; Department of Accounting, School of Economics and Management, East China Jiaotong University, 330013 Jiangxi, China.)

  • Zhang Mengdie

    (School of Business and Economics, Universiti Putra Malaysia, 43400 UPM Serdang Selangor Darul Ehsan, Malaysia,)

Abstract

This paper analyses how Chinese listed companies have channelled their environmental responsibility through government resources by observing corporate behaviour between 2015 and 2020. Results indicate that corporate environmental responsibility does not directly enhance corporate green innovation (CGI) and that government environmental subsidies (ES) are required to positively incentivise CGI capabilities. Increased corporate investment in environmental protection and improved governance are positive for CGI, unlike environmental management system certification. This paper provides novel ideas for future research on how Chinese listed companies may convert their environmental responsibility into green innovation through government ES. This may benefit future research on sustainable development.

Suggested Citation

  • Li Shi Yu & Ao Xiangyuan & Ong Tze San & Chen Anqi & Zhang Mengdie, 2022. "Can Companies Make Green Innovation a Reality by Means of Corporate Environmental Responsibility? The Mediating Role of Environmental Subsidies," International Journal of Energy Economics and Policy, Econjournals, vol. 12(6), pages 350-356, November.
    • Handle: RePEc:eco:journ2:2022-06-42
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    References listed on IDEAS

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    1. Jing Bai & Jiansheng Qu & Tek Narayan Maraseni & Jinjia Wu & Li Xu & Yujie Fan, 2019. "Spatial and Temporal Variations of Embodied Carbon Emissions in China’s Infrastructure," Sustainability, MDPI, vol. 11(3), pages 1-17, January.
    2. Hongjun Cao & Zewen Chen, 2018. "The driving effect of internal and external environment on green innovation strategy-The moderating role of top management’s environmental awareness," Nankai Business Review International, Emerald Group Publishing Limited, vol. 10(3), pages 342-361, December.
    3. Fang, Zhenming & Kong, Xiaoran & Sensoy, Ahmet & Cui, Xin & Cheng, Feiyang, 2021. "Government’s awareness of Environmental protection and corporate green innovation: A natural experiment from the new environmental protection law in China," Economic Analysis and Policy, Elsevier, vol. 70(C), pages 294-312.
    4. Hongshan Ai & Shenglan Hu & Ke Li & Shuai Shao, 2020. "Environmental regulation, total factor productivity, and enterprise duration: Evidence from China," Business Strategy and the Environment, Wiley Blackwell, vol. 29(6), pages 2284-2296, September.
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    Cited by:

    1. Nga Trinh, 2024. "Economic Policy Uncertainty and Corporate Investment Efficiency: Evidence from Australian Energy Companies," International Journal of Energy Economics and Policy, Econjournals, vol. 14(1), pages 53-60, January.

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    More about this item

    Keywords

    Corporate green innovation; environmental subsidies; corporate environmental responsibility; sustainability development; corporate governance;
    All these keywords.

    JEL classification:

    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development
    • F64 - International Economics - - Economic Impacts of Globalization - - - Environment
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies

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