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Navigating Urban Transformation: The Impact of Green Innovation on Sustainable Development Performance

Author

Listed:
  • Zihao Zhen

    (School of Business, Renmin University of China, Beijing 100872, China)

  • Jiabei Chen

    (School of Accounting, Wuhan Textile University, Wuhan 430200, China)

  • Ya Zhang

    (Joint Research Institute, Nanjing Audit University, Nanjing 211815, China)

  • Jie Qin

    (School of Economics, Nanjing Audit University, Nanjing 211815, China)

Abstract

This paper examines the influence of green innovation on the sustainable development performance of Chinese companies listed on the Shanghai and Shenzhen A-shares market between 2010 and 2021. Utilizing manually collected green innovation patent data from the National Intellectual Property Administration, this paper finds that green innovation can enhance corporate sustainable development performance by improving the corporation’s reputation and increasing resource utilization efficiency within metropolitan areas. Heterogeneity analyses show that the impact of green innovation on sustainable development performance is more pronounced when the urban commercial credit environment is better, following the enactment of the new Environmental Protection Law, and during the implementation of digital transformation processes in cities. This paper enriches the research related to the economic consequences of green innovation and the influencing factors of sustainable development performance, offering theoretical support for policy refinement by regulatory authorities and the optimization of investment decisions by investors.

Suggested Citation

  • Zihao Zhen & Jiabei Chen & Ya Zhang & Jie Qin, 2025. "Navigating Urban Transformation: The Impact of Green Innovation on Sustainable Development Performance," Sustainability, MDPI, vol. 17(2), pages 1-21, January.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:2:p:576-:d:1566058
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