IDEAS home Printed from https://ideas.repec.org/a/eee/reveco/v81y2022icp147-159.html
   My bibliography  Save this article

Environmental information disclosure and firms’ green innovation: Evidence from China

Author

Listed:
  • Ding, Jinxiu
  • Lu, Zhe
  • Yu, Chin-Hsien

Abstract

Environmental information regulation has attracted growing attention from policymakers and scholars. We conduct a quasi-natural experiment based on the pollution information transparency index (PITI) assessment for Chinese cities in 2008, applying the difference-in-difference-in-differences estimation to identify the impact of PITI disclosure on firms’ green innovation. Our results demonstrate that environmental information disclosure increases the green patenting activity of high-polluting firms. This positive effect is greater for firms with state ownership, non-foreign ownership, high-tech certification experience, and large firm size. We also find that increased corporate social responsibility following PITI disclosure is the main driving force for increased green patenting.

Suggested Citation

  • Ding, Jinxiu & Lu, Zhe & Yu, Chin-Hsien, 2022. "Environmental information disclosure and firms’ green innovation: Evidence from China," International Review of Economics & Finance, Elsevier, vol. 81(C), pages 147-159.
    • Handle: RePEc:eee:reveco:v:81:y:2022:i:c:p:147-159
    DOI: 10.1016/j.iref.2022.05.007
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1059056022001447
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.iref.2022.05.007?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Paul Lanoie & Michel Patry & Richard Lajeunesse, 2008. "Environmental regulation and productivity: testing the porter hypothesis," Journal of Productivity Analysis, Springer, vol. 30(2), pages 121-128, October.
    2. Yu, Chin-Hsien & Wu, Xiuqin & Zhang, Dayong & Chen, Shi & Zhao, Jinsong, 2021. "Demand for green finance: Resolving financing constraints on green innovation in China," Energy Policy, Elsevier, vol. 153(C).
    3. Dayuan Li & Min Huang & Shenggang Ren & Xiaohong Chen & Lutao Ning, 2018. "Environmental Legitimacy, Green Innovation, and Corporate Carbon Disclosure: Evidence from CDP China 100," Journal of Business Ethics, Springer, vol. 150(4), pages 1089-1104, July.
    4. Nick Johnstone & Ivan Hačič & Margarita Kalamova, 2010. "Environmental Policy Characteristics and Technological Innovation," Economia politica, Società editrice il Mulino, issue 2, pages 277-302.
    5. Kirsten A. Cook & Andrea M. Romi & Daniela Sánchez & Juan Manuel Sánchez, 2019. "The influence of corporate social responsibility on investment efficiency and innovation," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 46(3-4), pages 494-537, March.
    6. Daron Acemoglu & Ufuk Akcigit & Douglas Hanley & William Kerr, 2016. "Transition to Clean Technology," Journal of Political Economy, University of Chicago Press, vol. 124(1), pages 52-104.
    7. Joeri Rogelj & David L. McCollum & Brian C. O’Neill & Keywan Riahi, 2013. "2020 emissions levels required to limit warming to below 2 °C," Nature Climate Change, Nature, vol. 3(4), pages 405-412, April.
    8. Noailly, Joëlle & Smeets, Roger, 2015. "Directing technical change from fossil-fuel to renewable energy innovation: An application using firm-level patent data," Journal of Environmental Economics and Management, Elsevier, vol. 72(C), pages 15-37.
    9. Zhenyu Jiang & Zongjun Wang & Yanqi Zeng, 2020. "Can voluntary environmental regulation promote corporate technological innovation?," Business Strategy and the Environment, Wiley Blackwell, vol. 29(2), pages 390-406, February.
    10. Amore, Mario Daniele & Bennedsen, Morten, 2016. "Corporate governance and green innovation," Journal of Environmental Economics and Management, Elsevier, vol. 75(C), pages 54-72.
    11. Paul Lanoie & Jérémy Laurent‐Lucchetti & Nick Johnstone & Stefan Ambec, 2011. "Environmental Policy, Innovation and Performance: New Insights on the Porter Hypothesis," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 20(3), pages 803-842, September.
    12. Peng, Jiaying & Xie, Rui & Ma, Chunbo & Fu, Yang, 2021. "Market-based environmental regulation and total factor productivity: Evidence from Chinese enterprises," Economic Modelling, Elsevier, vol. 95(C), pages 394-407.
    13. Bergek, Anna & Berggren, Christian, 2014. "The impact of environmental policy instruments on innovation: A review of energy and automotive industry studies," Ecological Economics, Elsevier, vol. 106(C), pages 112-123.
    14. Camilo Mora & Daniele Spirandelli & Erik C. Franklin & John Lynham & Michael B. Kantar & Wendy Miles & Charlotte Z. Smith & Kelle Freel & Jade Moy & Leo V. Louis & Evan W. Barba & Keith Bettinger & Ab, 2018. "Broad threat to humanity from cumulative climate hazards intensified by greenhouse gas emissions," Nature Climate Change, Nature, vol. 8(12), pages 1062-1071, December.
    15. Hering, Laura & Poncet, Sandra, 2014. "Environmental policy and exports: Evidence from Chinese cities," Journal of Environmental Economics and Management, Elsevier, vol. 68(2), pages 296-318.
    16. Adam B. Jaffe & Karen Palmer, 1997. "Environmental Regulation And Innovation: A Panel Data Study," The Review of Economics and Statistics, MIT Press, vol. 79(4), pages 610-619, November.
    17. Panle Jia Barwick & Shanjun Li & Deyu Rao & Nahim Bin Zahur, 2018. "The Morbidity Cost of Air Pollution: Evidence from Consumer Spending in China," Working Papers id:12825, eSocialSciences.
    18. Tu, Zhengge & Hu, Tianyang & Shen, Renjun, 2019. "Evaluating public participation impact on environmental protection and ecological efficiency in China: Evidence from PITI disclosure," China Economic Review, Elsevier, vol. 55(C), pages 111-123.
    19. Michael Greenstone & John A. List & Chad Syverson, 2011. "The Effects of Environmental Regulation on the Competiveness of U.S. Manufacturing," Working Papers 11-03, Center for Economic Studies, U.S. Census Bureau.
    20. James R. Brown & Gustav Martinsson, 2019. "Does Transparency Stifle or Facilitate Innovation?," Management Science, INFORMS, vol. 65(4), pages 1600-1623, April.
    21. Fan, Joseph P. H. & Titman, Sheridan & Twite, Garry, 2012. "An International Comparison of Capital Structure and Debt Maturity Choices," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 47(1), pages 23-56, February.
    22. Wenhao Song & Hongyan Yu, 2018. "Green Innovation Strategy and Green Innovation: The Roles of Green Creativity and Green Organizational Identity," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 25(2), pages 135-150, March.
    23. Finger, Stephen R. & Gamper-Rabindran, Shanti, 2013. "Mandatory disclosure of plant emissions into the environment and worker chemical exposure inside plants," Ecological Economics, Elsevier, vol. 87(C), pages 124-136.
    24. Dai, Xiaoyong & Wang, Fang, 2019. "Does the high- and new-technology enterprise program promote innovative performance? Evidence from Chinese firms," China Economic Review, Elsevier, vol. 57(C).
    25. Xiaojian Xiang & Chuanjiang Liu & Mian Yang & Xiaomeng Zhao, 2020. "Confession or justification: The effects of environmental disclosure on corporate green innovation in China," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(6), pages 2735-2750, November.
    26. Konar, Shameek & Cohen, Mark A., 1997. "Information As Regulation: The Effect of Community Right to Know Laws on Toxic Emissions," Journal of Environmental Economics and Management, Elsevier, vol. 32(1), pages 109-124, January.
    27. Chen, Yvonne Jie & Li, Pei & Lu, Yi, 2018. "Career concerns and multitasking local bureaucrats: Evidence of a target-based performance evaluation system in China," Journal of Development Economics, Elsevier, vol. 133(C), pages 84-101.
    28. Liu, Baohua & Sun, Pei-Yu & Zeng, Yongliang, 2020. "Employee-related corporate social responsibilities and corporate innovation: Evidence from China," International Review of Economics & Finance, Elsevier, vol. 70(C), pages 357-372.
    29. Foulon, Jerome & Lanoie, Paul & Laplante, Benoit, 2002. "Incentives for Pollution Control: Regulation or Information?," Journal of Environmental Economics and Management, Elsevier, vol. 44(1), pages 169-187, July.
    30. Wang, Chunhua & Wu, JunJie & Zhang, Bing, 2018. "Environmental regulation, emissions and productivity: Evidence from Chinese COD-emitting manufacturers," Journal of Environmental Economics and Management, Elsevier, vol. 92(C), pages 54-73.
    31. Eric Yongchen Zou, 2021. "Unwatched Pollution: The Effect of Intermittent Monitoring on Air Quality," American Economic Review, American Economic Association, vol. 111(7), pages 2101-2126, July.
    32. Emilio Passetti & Lino Cinquini & Andrea Tenucci, 2018. "Implementing internal environmental management and voluntary environmental disclosure," Accounting, Auditing & Accountability Journal, Emerald Group Publishing Limited, vol. 31(4), pages 1145-1173, May.
    33. Shi, Xinzheng & Xu, Zhufeng, 2018. "Environmental regulation and firm exports: Evidence from the eleventh Five-Year Plan in China," Journal of Environmental Economics and Management, Elsevier, vol. 89(C), pages 187-200.
    34. He, Feng & Ma, Yaming & Zhang, Xiaojie, 2020. "How does economic policy uncertainty affect corporate Innovation?–Evidence from China listed companies," International Review of Economics & Finance, Elsevier, vol. 67(C), pages 225-239.
    35. Gollop, Frank M & Roberts, Mark J, 1983. "Environmental Regulations and Productivity Growth: The Case of Fossil-Fueled Electric Power Generation," Journal of Political Economy, University of Chicago Press, vol. 91(4), pages 654-674, August.
    36. Isabel-María García-Sánchez & Nicola Raimo & Filippo Vitolla, 2021. "Are Environmentally Innovative Companies Inclined towards Integrated Environmental Disclosure Policies?," Administrative Sciences, MDPI, vol. 11(1), pages 1-19, March.
    37. Albino, Vito & Ardito, Lorenzo & Dangelico, Rosa Maria & Messeni Petruzzelli, Antonio, 2014. "Understanding the development trends of low-carbon energy technologies: A patent analysis," Applied Energy, Elsevier, vol. 135(C), pages 836-854.
    38. Xiao Wang & George Deltas & Madhu Khanna & Xiang Bi, 2021. "Community Pressure and the Spatial Redistribution of Pollution: The Relocation of Toxic-Releasing Facilities," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 8(3), pages 577-616.
    39. Michael E. Porter & Claas van der Linde, 1995. "Toward a New Conception of the Environment-Competitiveness Relationship," Journal of Economic Perspectives, American Economic Association, vol. 9(4), pages 97-118, Fall.
    40. Nick Johnstone & Ivan Haščič & Margarita Kalamova, 2010. "Environmental Policy Design Characteristics and Technological Innovation: Evidence from Patent Data," OECD Environment Working Papers 16, OECD Publishing.
    41. Brunnermeier, Smita B. & Cohen, Mark A., 2003. "Determinants of environmental innovation in US manufacturing industries," Journal of Environmental Economics and Management, Elsevier, vol. 45(2), pages 278-293, March.
    42. Kesidou, Effie & Demirel, Pelin, 2012. "On the drivers of eco-innovations: Empirical evidence from the UK," Research Policy, Elsevier, vol. 41(5), pages 862-870.
    43. Jianhua Yin & Sen Wang, 2018. "The effects of corporate environmental disclosure on environmental innovation from stakeholder perspectives," Applied Economics, Taylor & Francis Journals, vol. 50(8), pages 905-919, February.
    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. Shiliang Hu & Wenhao Dong & Yongchun Huang, 2023. "Analysts’ Green Coverage and Corporate Green Innovation in China: The Moderating Effect of Corporate Environmental Information Disclosure," Sustainability, MDPI, vol. 15(7), pages 1-22, March.
    2. Xu Luo & Mengke Yu & Yongsheng Jin, 2023. "The Impact of Economic Policy Uncertainty on Enterprise Green Innovation: A Study on the Moderating Effect of Carbon Information Disclosure," Sustainability, MDPI, vol. 15(6), pages 1-17, March.
    3. Yu Liu & Huiping Ding & Biao Sun, 2022. "Does Green Credit Policy Promote or Inhibit Firms’ Green Innovation in China? Moderating Effect of Environmental Information Disclosure," Sustainability, MDPI, vol. 15(1), pages 1-17, December.
    4. Yueping Du & Huanhuan Wang, 2022. "Green Innovation Sustainability: How Green Market Orientation and Absorptive Capacity Matter?," Sustainability, MDPI, vol. 14(13), pages 1-20, July.
    5. Bai, Rui & Lin, Boqiang, 2024. "Green finance and green innovation: Theoretical analysis based on game theory and empirical evidence from China," International Review of Economics & Finance, Elsevier, vol. 89(PA), pages 760-774.

    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. Mian Yang & Yining Yuan & Fuxia Yang & Dalia Patino-Echeverri, 2021. "Effects of environmental regulation on firm entry and exit and China’s industrial productivity: a new perspective on the Porter Hypothesis," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 23(4), pages 915-944, October.
    2. Zhang, Ming & Zhao, Yingxue, 2023. "Does environmental regulation spur innovation? Quasi-natural experiment in China," World Development, Elsevier, vol. 168(C).
    3. Zhou, Peng & Song, Frank M. & Huang, Xiaoqi, 2023. "Environmental regulations and firms' green innovations: Transforming pressure into incentives," International Review of Financial Analysis, Elsevier, vol. 86(C).
    4. Lu, Yunguo & Zhang, Lin, 2022. "National mitigation policy and the competitiveness of Chinese firms," Energy Economics, Elsevier, vol. 109(C).
    5. Rassier, Dylan G. & Earnhart, Dietrich, 2015. "Effects of environmental regulation on actual and expected profitability," Ecological Economics, Elsevier, vol. 112(C), pages 129-140.
    6. Wang, Yan & Shen, Neng, 2016. "Environmental regulation and environmental productivity: The case of China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 62(C), pages 758-766.
    7. Rubashkina, Yana & Galeotti, Marzio & Verdolini, Elena, 2015. "Environmental regulation and competitiveness: Empirical evidence on the Porter Hypothesis from European manufacturing sectors," Energy Policy, Elsevier, vol. 83(C), pages 288-300.
    8. Kopyrina, Olga & Wu, Kai & Ying, Zhanyu, 2023. "Greening through central inspection: The role of legitimacy pressure and risk-taking," Pacific-Basin Finance Journal, Elsevier, vol. 77(C).
    9. Stefan Ambec & Mark A. Cohen & Stewart Elgie & Paul Lanoie, 2013. "The Porter Hypothesis at 20: Can Environmental Regulation Enhance Innovation and Competitiveness?," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 7(1), pages 2-22, January.
    10. Albrizio, Silvia & Kozluk, Tomasz & Zipperer, Vera, 2017. "Environmental policies and productivity growth: Evidence across industries and firms," Journal of Environmental Economics and Management, Elsevier, vol. 81(C), pages 209-226.
    11. Bai, Caiquan & Liu, Hangjuan & Zhang, Rongjie & Feng, Chen, 2023. "Blessing or curse? Market-driven environmental regulation and enterprises' total factor productivity: Evidence from China's carbon market pilots," Energy Economics, Elsevier, vol. 117(C).
    12. Wang, Chunhua & Wu, JunJie & Zhang, Bing, 2018. "Environmental regulation, emissions and productivity: Evidence from Chinese COD-emitting manufacturers," Journal of Environmental Economics and Management, Elsevier, vol. 92(C), pages 54-73.
    13. Zhang, Yijun & Li, Xiaoping & Song, Yi & Jiang, Feitao, 2021. "Can green industrial policy improve total factor productivity? Firm-level evidence from China," Structural Change and Economic Dynamics, Elsevier, vol. 59(C), pages 51-62.
    14. Croce, Annalisa & Toschi, Laura & Ughetto, Elisa & Zanni, Sara, 2024. "Cleantech and policy framework in Europe: A machine learning approach," Energy Policy, Elsevier, vol. 186(C).
    15. Chen, Wen & Zhu, Yufeng & He, Zehui & Yang, Yang, 2022. "The effect of local government debt on green innovation: Evidence from Chinese listed companies," Pacific-Basin Finance Journal, Elsevier, vol. 73(C).
    16. Benatti, Nicola & Groiss, Martin & Kelly, Petra & Lopez-Garcia, Paloma, 2024. "The impact of environmental regulation on clean innovation: are there crowding out effects?," Working Paper Series 2946, European Central Bank.
    17. Bu, Maoliang & Qiao, Zhenzi & Liu, Beibei, 2020. "Voluntary environmental regulation and firm innovation in China," Economic Modelling, Elsevier, vol. 89(C), pages 10-18.
    18. Chen, Zhongfei & Zhang, Xiao & Chen, Fanglin, 2021. "Do carbon emission trading schemes stimulate green innovation in enterprises? Evidence from China," Technological Forecasting and Social Change, Elsevier, vol. 168(C).
    19. Gao, Yanyan & Zheng, Jianghuai, 2024. "The opposite innovation impacts of air and water pollution regulations: Evidence from the total emissions control policy in China," Journal of Asian Economics, Elsevier, vol. 92(C).
    20. Zhang, Yijun & Song, Yi, 2022. "Tax rebates, technological innovation and sustainable development: Evidence from Chinese micro-level data," Technological Forecasting and Social Change, Elsevier, vol. 176(C).

    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:eee:reveco:v:81:y:2022:i:c:p:147-159. 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/620165 .

    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.