Based on the unique micro-data of newly built polluting firms for the period of 2009–2018, this paper adopts the conditional logit model to empirically evaluate the impact of environmental regulations on the location choice of polluting firms. Moreover, we extend the theoretical model by considering that the environment regulations not only influence the pollution cost but also the level of technological innovation and labor cost. The empirical results show that polluting firms tend to flow into areas with stringent environmental regulations, which supports the Porter hypothesis, but the effect of environmental regulations have a divergent impact on heavily polluting firms. Heterogeneous analysis indicates that environmental regulations have shown a positive impact on the location choice of private and foreign-funded firms but no significant impact on that of state-owned firms; the impact of environmental regulation is consistent with pollution haven hypothesis for firms in the central region but is in line with Porter hypothesis for firms in other regions. Meanwhile, the probability of air polluting firms entering areas with stricter environmental regulations is higher than that of water-polluting ones. Finally, this paper further empirically tests the conduction mechanism, that is, environmental regulations can affect the location choice of polluting firms by affecting the regional technological innovation capabilities and labor cost.

Whether green credit policy is conducive to improving the green innovation efficiency of heavy polluting industries is of great significance for China’s sustainable economic development and the construction of ecological civilization. This paper uses China’s Green Credit Guidelines to conduct a quasi-natural experiment based on relevant panel data of industries from 2007 to 2018. Specifically, it employs the Super-SBM model including non-expected output to measure the green innovation efficiency of 35 industries in China, and constructs the propensity score matching difference-in-difference model to explore how green credit policy impact on the green innovation efficiency of heavy polluting industries. The results show that the coefficient of difference-in-difference ([Formula: see text]) was 0.262, which was significant at the 1% level; the coefficient of [Formula: see text] was not significant; the coefficient of [Formula: see text] was 0.490, which was significant at the 1% level; and the coefficient of [Formula: see text] was 0.173, which was significant at the 1% level, indicating that green credit policy significantly contributes to the green innovation efficiency of heavy polluting industries, though with a lag effect. Further study finds that green credit policy pushes heavy polluting industries to improve green innovation efficiency by increasing financing cost and R&D investment; meanwhile, the heterogeneity test shows that the higher the state-owned share of the industry, the greater the positive effect of green credit policy on its green innovation efficiency. Finally, in order to accelerate the implementation of green credit policy and promote the green innovation efficiency of heavy polluting industries, banks can guide heavy polluting industrial enterprises through credit to carry out green technological transformation, heavy polluting industries should raise awareness of green innovation, and government should encourage heavy polluting industrial enterprises to carry out green innovation, and guide and supervise the state-owned enterprises in particular, so that they can improve cleanliness and achieve green economic development.

Recently, the rapid development of digital finance in China has exerted a subtle influence on many aspects of social and economic development. However, the research on the impact of digital finance on corporate green innovation is rather lacking. In order to fill this gap, this paper uses the “Peking University Digital Finance Index” to evaluate the micro impact of financial innovation development on environmental governance from the firm level. The results show that digital finance can significantly improve the quantity and quality of corporate green innovation, and this effect still exists after considering endogeneity and a series of robustness tests. The promotion effect of digital finance on the quantity and quality of corporate green innovation is more obvious in state-owned, eastern, and mature enterprises. In addition, we find the mechanism behind the positive relationship between digital finance and corporate green innovation: digital finance makes firms more transparent and funds flow more convenient. Overall, this paper provides a micro explanation of environmental governance for the accelerated popularization of digital finance in emerging markets, which is urgently needed for most emerging economies seeking high-quality development.

This study investigates the effect of China’s national Five-Year Plan for environmental protection (FYPEP) on corporate green innovations based on the two-way fixed effect model and panel data about the green patents of China’s publicly listed corporations during 1990–2020. Furthermore, the heterogeneity of these green innovations is further discussed with reference to the types of innovation, enterprise ownership, and the location of the corporations. It is found that FYPEP significantly induced corporation green innovations at regional and industrial levels. Heterogeneity analysis indicates that the inductive effect of FYPEP is stronger on green utility model patents than on green invention patents. State-owned enterprises react to green innovation policies more significantly than do private businesses. The inductive effect of FYPEP is stronger in Eastern China than in mid- and Western China. From the perspective of government intervention, this research renders a new framework for the formulation of policies of national environmental protection and corporate green innovation.

The Chinese authorities revised its Pollution Discharge Fee Policy and officially implemented the Environmental Protection Tax Law on January 1, 2018. Considering the importance of such a reform, we utilise the ordinary least squares and probit regression models to explore the effects of these policies on firm performance during the transitional period of 2016 to 2019. We find that fee rates are negatively related to firm financial performance, i.e. profitability and development capability, and positively associated with firm environmental performance, i.e. corporation social responsibility. We applied the IV 2SLS regression model to control for firms’ research and development investment, and the empirical results remain the same. Regarding subsample tests, these policies have stronger impacts on firm performance among heavy polluters and non-state-owned enterprises than those of environmental friendly firms and state-owned enterprises. The empirical results hold after we control for various potential endogeneity issues. The findings of this article may assist the authorities to adjust the tax law, so as to protect the environment and relieve the negative impact on firm performance simultaneously.

In recent years, the frequent occurrence of smog in Chinese cities has prompted great changes in the policy environment faced by enterprises. In this study, we address the question whether the decision-making behavior of enterprises will be affected by smog. This paper studied the 2010–2018 data of 218 listed Chinese polluting companies to investigate the impact of smog on corporate social responsibility (CSR). The subjects of this study were all listed on China’s A-share market on either the Shenzhen or Shanghai Stock Exchange. The empirical results indicate the following: (1) the more serious the smog, the more likely enterprises are to perform CSR; (2) smog exerts a higher impact on the social responsibility of enterprises that receive more media attention. Further research determined that media attention, whether positive, negative, or neutral, plays the same role in moderating the relationship between smog and CSR; and (3) compared to private enterprises, the function of smog in promoting the CSR fulfillment of state-owned enterprises (SOEs) is more obvious. Based on the reality of Chinese polluting industries, this research combined smog and media attention in the exploration of CSR, which not only enriches CSR research but also provides positive guidance for the sustainable development of polluting enterprises.

Emerging markets face severe ecological and environmental problems in periods of economic and political transition. The existing literature analyses the impact of technology on environmental benefits and the role of technology on the green innovation of enterprises, mostly from the perspective of technology spillover in enterprises in mature markets. Based on a sample of 229 Chinese cross-border mergers and acquisitions (M&As), this paper explores the role of technology-driven cross-border M&As (TDC M&As) in green innovation, finding that TDC M&As have a significant promoting effect on green innovation. A higher degree of ownership concentration positively promotes the relationship between TDC M&As and green innovation in the enterprise. This paper divides enterprises into state-owned enterprises (SOEs) and political connection enterprises, with the nature of SOEs negatively affecting the relationship between TDC M&As and green innovation, the nature of political connections significantly promoting the relationship. Similarly, formal institutional distance negatively interacts with TDC M&As to affect the green innovation of enterprises, while informal distance interacts positively with TDC M&As. This paper has important implications for emerging market enterprises in realising the transformation of the mode of economic growth and achieving harmonious development between enterprises and the environment.

This paper examines the CO₂ emission efficiency of airlines in the years 2011 and 2018 by using the Atmosfair Airline Index. This index gives reliable results since it encompasses data from more than 100 airlines and considers important variables in the calculation of CO₂ emissions. Firstly, we investigate the regional differences and the effect of the share of government ownership in the CO₂ emission efficiency of airlines. These factors have not been taken into account in other studies by using such a comprehensive index. Secondly, by utilizing the Barro and Sala-i Martin model that is commonly used to examine the regional income convergence model in economics, we also check whether there is a convergence in the CO₂ emission efficiency of airlines or not. As a result, in terms of efficiency growth, we find that airlines in Europe are more successful compared to airlines from other regions. Furthermore, increases in the share of government ownership in airlines negatively affect the CO₂ emission efficiency in Asia, whereas it is insignificant in Europe and America. Moreover, there is no convergence in the CO₂ emission efficiency of airlines from all regions. This shows that low-efficient airlines are not catching up with high-efficient airlines. Lastly, we find that charter airlines are more efficient in terms of CO₂ emissions.

Although green mergers and acquisitions (M&A) emerged recently as corporate green management actions, whether they can prompt corporations to achieve green transformation is unclear, as little is known about how green M&A affects strategic decisions on corporate environmental behavior. Based on legitimacy theory, we analyze Chinese heavy-polluting firms listed in the Shanghai and Shenzhen Stock Exchanges from 2009 to 2017 to explore the impact of green M&A on corporate environmental governance. Results show that green M&A has a positive impact on corporate environmental management. Specifically, we find that the positive relationship between green M&A and corporate environmental governance is strong in firms in localities under considerable media scrutiny, as such firms face increased legitimacy benefits and illegitimacy penalties. Conversely, state-owned enterprises (SOEs) weaken this relationship, as such enterprises have natural political connections to undermine legitimacy benefits and avoid illegitimacy penalties. Thus, we argue that media scrutiny and SOEs influence the likelihood of an organization to implement green M&A as a sincere substantive strategic action. Finally, we summarize the green M&A implementation of an organization in environmental governance as a sincere green action rather than hypocritical greenwashing. Furthermore, we make contributions to legitimacy theory and the corporate environmental governance literature.

We analyze the real effects of the environmental regulation on technological innovation using an air pollution reduction governance policy promulgated in China under the 12ᵗʰ Plan in 2012. We treat the Air Pollution Prevention Policy as a quasi-natural experiment that is plausibly exogenous to the firms’ innovation policy and thus use the difference in difference (DID) as an identification strategy in our analysis. We provide evidence that environmental regulation substantially promotes innovation productivity. Our findings reveal that this impact is more pronounced for state-owned firms, pollution-intensive industries, and high-tech-intensive industries. We uncover three possible underlying economic mechanisms through which the air pollution reduction policy impacts innovation. We show that government financing, external governance from the capital market, and R&D intensity are three underlying economic channels through which environmental regulation promotes technological innovation. Collectively this study’s policy implication is that industrial policies that promote greener environments can enhance economic performance.