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Differential effects of voluntary environmental programs and mandatory regulations on corporate green innovation

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Listed:
  • Dayuan Li

    (Central South University)

  • Fei Tang

    (Central South University)

  • Lu Zhang

    (Hunan First Normal University)

Abstract

There is a long-lasting debate on whether environmental regulation fosters or hinders corporate green innovation. To address this debate, this study differentiates two types of regulations: mandatory environmental regulations (MERs) and voluntary environmental programs (VEPs), and explores whether MERs and VEPs, separately and jointly, affects corporate green innovation. This study also investigates the moderating effect of organizational slack on the focal relationship. With the data of top 100 listed companies in China, the results show that MERs significantly negatively affect green innovation, while VEPs significantly positively influence green innovation, and VEPs mitigate the negative impact of MERs on green innovation. Moreover, organizational slack strengthens the positive relationship between VEPs and green innovation, while no significant moderating effect on the MER–green innovation relationship. These findings provide guidance for corporate green innovation under mandatory regulations and voluntary programs.

Suggested Citation

  • Dayuan Li & Fei Tang & Lu Zhang, 2020. "Differential effects of voluntary environmental programs and mandatory regulations on corporate green innovation," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 103(3), pages 3437-3456, September.
    • Handle: RePEc:spr:nathaz:v:103:y:2020:i:3:d:10.1007_s11069-020-04137-y
    DOI: 10.1007/s11069-020-04137-y
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