IDEAS home Printed from https://ideas.repec.org/a/gam/jworld/v6y2025i1p29-d1593152.html
   My bibliography  Save this article

Green Innovation and Environmental Performance: The Moderating Roles of Governance and Policy

Author

Listed:
  • Fatima Batool

    (School of Finance, Central University of Finance and Economics, 39 South College Road, Haidian District, Beijing 100081, China)

  • Muhammad Mohsin

    (Department of Computer Science, Bioengineering, Robotics and Systems Engineering (DIBRIS), University of Genoa, 16146 Genoa, Italy)

  • Belal Mahmoud Alwadi

    (Department of Basic Sciences, Al-Zaytoonah University of Jordan, Queen Alia Airport Street, Amman 11733, Jordan)

Abstract

This study investigates the impact of green innovation (GI) on corporate environmental performance (CEP), while examining the moderating roles of corporate governance practices (CGPs) and environmental policy pressure (EPP). This study uses advanced statistical methods to ensure the reliability of the results. These include techniques such as propensity score matching (PSM), difference-in-differences (DID) analysis with China’s National Green Development Fund (2020) as the policy intervention, and the generalized method of moments (GMM), and this study examines how internal governance mechanisms and external regulatory pressures influence the GI-CEP relationship. The results show that GI significantly increases CEP, and that this effect is amplified by robust CGPs and EPP. By analyzing data from 4026 firm-year observations of A-share listed Chinese companies (2017–2022), the findings highlight the importance of innovation, governance, and policy in achieving sustainable environmental outcomes. This study provides valuable insights for firms and policymakers to foster green innovation and align corporate strategies with global sustainability goals.

Suggested Citation

  • Fatima Batool & Muhammad Mohsin & Belal Mahmoud Alwadi, 2025. "Green Innovation and Environmental Performance: The Moderating Roles of Governance and Policy," World, MDPI, vol. 6(1), pages 1-28, February.
    • Handle: RePEc:gam:jworld:v:6:y:2025:i:1:p:29-:d:1593152
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2673-4060/6/1/29/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2673-4060/6/1/29/
    Download Restriction: no
    ---><---

    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:gam:jworld:v:6:y:2025:i:1:p:29-:d:1593152. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.