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Unlocking green potential: The digital government-driven revolution in corporate green innovation

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  • Tan, Weijie
  • Zhang, Zihan
  • Chu, Zhongzhu
  • Chen, Pengyu

Abstract

This study leverages data of China's A-share listed companies spanning from 2010 to 2020, using the Internet Plus Government Services initiative as a quasi-natural experiment. By employing the difference-in-differences method, it empirically examines the empowering effects and underlying mechanisms of digital government on corporate green innovation. Research findings are as follows: 1) Digital government significantly enhances both the quantity and quality of corporate green innovation. 2) Corporate green innovation can be enhanced by digital government through promoting the digitization of the business environment, reducing transaction costs for enterprises, increasing R&D investment and green investments. 3) The enabling effects of digital government on corporate green innovation are particularly evident in companies with better environmental information disclosure, elevated levels of digital technology application, non-heavy-polluting industries, and enterprises located in regions with stricter environmental regulations. From the perspective of internalizing digital technology into government transformation, this study provides important insights for the future coordination of policies related to digital and green development.

Suggested Citation

  • Tan, Weijie & Zhang, Zihan & Chu, Zhongzhu & Chen, Pengyu, 2024. "Unlocking green potential: The digital government-driven revolution in corporate green innovation," Economic Analysis and Policy, Elsevier, vol. 83(C), pages 60-79.
    • Handle: RePEc:eee:ecanpo:v:83:y:2024:i:c:p:60-79
    DOI: 10.1016/j.eap.2024.06.010
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