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Effects of climate policy uncertainty on green innovation in Chinese enterprises

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  • Sun, Guanglin
  • Fang, Jiming
  • Li, Ting
  • Ai, Yongfang

Abstract

Climate policy uncertainty is an important factor for green innovation in Chinese enterprises. Drawing on data of officially listed enterprises in China from 2011 to 2020 this paper empirically tests the impact and mechanism of climate policy uncertainty on enterprises green innovation. Climate policy uncertainty has a significant negative impact on enterprises green innovation. Increasing climate policy uncertainty will inhibit enterprises green innovation. The intrinsic mechanism shows that the mediation effects of government green subsidies, environmental social responsibility, and financing constraints are significant. Increasing climate policy uncertainty inhibits green innovation by reducing government green subsidies, constraining enterprises to fulfilling their environmental social responsibility and raising financing constraints. All levels of the government in China should pay close attention to the impact of changes in the United States climate policies on enterprises.

Suggested Citation

  • Sun, Guanglin & Fang, Jiming & Li, Ting & Ai, Yongfang, 2024. "Effects of climate policy uncertainty on green innovation in Chinese enterprises," International Review of Financial Analysis, Elsevier, vol. 91(C).
    • Handle: RePEc:eee:finana:v:91:y:2024:i:c:s1057521923004763
    DOI: 10.1016/j.irfa.2023.102960
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    Cited by:

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    3. Dong, Xiaotian & Wang, Kai-Hua & Tao, Ran & Sorana, Vătavu & Moldovan, Nicoleta-Claudia, 2024. "Is there a relationship between climate policy uncertainty and green finance? Evidence from bootstrap rolling window test," Economic Analysis and Policy, Elsevier, vol. 82(C), pages 277-289.
    4. Li, Yiping & Zheng, Lanxing & Xie, Chang & Fang, Jiming, 2024. "Big data development and enterprise ESG performance: Empirical evidence from China," International Review of Economics & Finance, Elsevier, vol. 93(PB), pages 742-755.
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    9. Guo, Yuanyu & Xie, Wenlan & Yang, Yang, 2024. "Dual green innovation capability, environmental regulation intensity, and high-quality economic development in China: Can green and growth go together?," Finance Research Letters, Elsevier, vol. 63(C).
    10. Qin, Meng & Zhu, Yujie & Xie, Xin & Shao, Xuefeng & Lobonţ, Oana-Ramona, 2024. "The impact of climate risk on technological progress under the fourth industrial era," Technological Forecasting and Social Change, Elsevier, vol. 202(C).

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