How digital transformation facilitate synergy for pollution and carbon reduction: Evidence from China.

Frontier studies have neglected the impact of digital transformation (DT) on the synergy for pollution and carbon reduction (SPCR) from the perspective of micro enterprises. This paper explores the SPCR effect of DT, as well as its mechanism at micro-firm level. The study found that: (1) DT significantly facilitates corporate SPCR. For every 10% increase in the level of DT, the ranking of SPCR will rise by about 2.3 places. This effect is more obvious in high-tech firms and non-heavy polluters, firms in the eastern region in China, and non-SOE. (2) DT creates innovation-driven and structure-optimizing effects, which enhance the corporate green innovation ability, optimize the business structure and capital allocation structure of enterprises, and then drive the SPCR. (3) External public environmental concerns (PEC) and internal corporate ESG governance act as "accelerators" promoting the SPCR effect of DT. Based on these, policy implications are made to accelerate the pace of corporate DT, give full play to the first-mover advantage, and break the "pollution (carbon) lock-in" with a view to providing theoretical references for the listed enterprises' digitalized governance of SPCR, as well as the governmental departments' formulation of relevant guiding policies, and striving to achieve the high-quality development goal.

Path to pollution and carbon reduction synergy from the perspective of the digital economy: Fresh evidence from 292 prefecture-level cities in China.

The digital economy is a crucial focus for realizing the transformation of old and new kinetic energy in China. It is widely integrated with various fields of the economy and society, constantly providing a new dynamic mechanism with synergetic control of environmental pollution and carbon emissions (SCEPCE). Based on panel data from 292 prefecture-level cities in China from 2011 to 2021, this study discusses the spatial effects and mechanisms of the digital economy on the coordinated control of pollutants and carbon emissions. The study found that: (1) The digital economy has direct and indirect influences on the coordinated control of pollutants and carbon emissions. The digital economy can drive reductions in pollutants and carbon dioxide emissions by upgrading industrial structures and transforming energy structures. (2) Green innovation plays an active regulatory role in the digital economy and structural optimization, particularly in the context of SCEPCE. This interference helps mitigate the impact of the digital economy on pollution and carbon emissions. (3) The digital economy has a significant spatial spillover effect on the coordinated control of pollutants and carbon emissions. (4) The influence mechanism of the digital economy on pollution reduction and carbon reduction synergy exhibits geographical heterogeneity, resource endowment heterogeneity. To enhance the synergy of pollution reduction and carbon reduction, it is essential to bolster support and optimise the digital economy at various levels. This includes reinforcing regional balance, considering spatial spillover effects, and enhancing the leading role of developed cities in the region.

From Covid-19 to conflict: Does environmental regulation and green innovation improve industrial sector decarbonization efforts and environmental management?

During the COVID-19 period, industrial production was slowed or halted due to COVID restrictions and lockdowns, followed by global tensions and conflicts, which created uncertainties for industrial production. Similarly, during this period, the growth in carbon emissions was seen shrinking. However, it is greatly important to explore whether this shrinking trend will continue or whether a new growth pattern could emerge. Considering this, the research was carried out to investigate the relationship between green innovation initiatives and environmental regulations in the process of environmental management and environmental performance in the industrial sector. To do so, the survey-based research methodology using PLS-SEM was adopted, and data was gathered from 279 managers working in the equipment manufacturing industry. Our empirical findings revealed that environmental regulation and green innovation efforts strengthen decarbonization efforts, which further improve environmental management and environmental performance. The mediating role of decarbonization efforts was found to be prominent among green process innovation, environmental management and environmental performance. Moreover, decarbonization serves as a mediator between green product innovation and environmental management. In contrast, we could not verify that decarbonization mediates the relationship between green product innovation and environmental performance. The key findings are greatly important and provide a fresh roadmap for environmental management in the post-COVID era.

Can vertical environmental regulation induce enterprise green innovation? A new perspective from automatic air quality monitoring station in China.

Based on panel data of listed companies in China from 2006 to 2020, this study takes the establishment of automatic air quality monitoring stations as a quasi-natural experiment and uses the staggered difference-in-differences method to explore whether the establishment of monitoring stations promotes green innovation of listed companies. The empirical results show that: (1) The green innovation of companies achieves an increase of 3.5% with monitoring stations in their locations, and an increase of 2.3% with the establishment of each additional monitoring station. This conclusion is valid after a series of robustness tests and exclusive tests. (2) The heterogeneity analyses show that monitoring stations have a greater role in promoting green innovation for non-state-owned enterprises, enterprises in heavy polluting industries and enterprises in key cities for environmental protection. (3) The transmission mechanism test results show that the establishment of automatic air monitoring station has crowding-out effect rather than leverage effect on green innovation, substantial innovation rather than strategic innovation. (4) The further analyses manifest the promotion of end-to-end green innovation, independent invention and quality of green patents.

Does place-based green policy improve air pollution? Evidence from China's National Eco-Industrial Demonstration Park Policy.

Air pollution is one of the serious environmental problems facing the world. This paper systematically investigates the impact and transmission mechanism of the construction of national eco-industrial parks (NEDPs) on urban air pollution based on Chinese city-level panel data from 2003 to 2021 using a staggered difference-in-differences (staggered DID) model. It is found that the construction of NEDP significantly reduces urban air pollution, a conclusion supported by the negative weight diagnostic test and two types of robust DID estimators. Mechanism analyses indicate that NEDP construction reduces urban air pollution mainly by improving regional environmental regulation, promoting green technology innovation and improving energy structure. In addition, the mitigation effect of NEDP construction on urban air pollution is heterogeneous by policy intensity, city resource endowment, city size and administrative status. Further tests show that the institutional environment enhances the air pollution mitigation effect of NEDP construction and that the better the degree of marketization, property rights system, legal system and market development in the place where the policy is implemented, the more conducive it is to amplify the air pollution suppression effect brought about by NEDP construction. Developing economies should take complete account of the characteristics of different regions when implementing place-based green policies to achieve synergistic development of the environment and the economy.

Impact of Environmental Protection Tax on carbon intensity in China.

In the context of increasingly severe global climate change, finding effective carbon emission reduction strategies has become key to mitigating climate change. Environmental Protection Tax (EPT), as a widely recognized method, effectively promotes climate change mitigation by encouraging emission reduction behaviors and promoting the application of clean technologies. Based on data from 282 cities in China, this paper takes the official implementation of the EPT in 2018 as the policy impact and the cities with increased tax rates for air taxable pollutants as the treatment group and uses DID model to systematically demonstrate the relationship between the implementation of the EPT and carbon intensity (CI) and further explores the possible pollutant emissions and green innovation mediating effects. The findings show that (1) the implementation of EPT can effectively reduce CI by about 4.75%, and this conclusion still holds after considering the robustness of variable selection bias, elimination of other normal effects, policy setting time bias, and self-selection bias. (2) The implementation of EPT can reduce CI by reducing pollutant emissions and improving the level of green innovation. (3) There is obvious regional heterogeneity in the carbon reduction effect of EPT, and the implementation of EPT has a more significant effect on CI in medium-tax areas, low environmental concern areas, general cities, and eastern regions. This paper not only provides a new analytical perspective for systematically understanding the carbon emission reduction effect of EPT but also provides policy insights for promoting regional green transformation and advancing carbon peak carbon neutralization.

Extrusion Effect or Promotion Effect? The Effect of Environmental Regulation on Enterprise Green Innovation.

This paper took the policy of China' Air Pollution Prevention and Control Action Plan as an exogenous shock to reflect the change in environmental regulation intensity. By matching environmental policies with micro data of listed companies in China, this paper explored the effect and mechanisms of environmental regulation on enterprise green innovation. Through constructing difference-in-difference (DID) and difference-in-difference-in-difference (DDD) models, we found the following to be the case: (1) Environmental regulation had a significant positive effect with the green innovation level of Chinese listed companies. (2) Compared with non-regulated industries, this policy has led to a significant increase (5.4%) in the amount of firms' green patent applications in regulated industries, and the promoting effect was more obvious in key areas that are strictly controlled by this policy. (3) Compared with non-state-owned enterprises, it had a stronger impact on the green innovation of state-owned enterprises. (4) Mechanistic analysis showed that China's environmental regulation can play a resource compensation effect by increasing environmental protection subsidies for enterprises' green innovation behaviors. Additionally, it can force firms to increase investment in environmental pollution governance by raising pollution penalties, thus exerting the forcing effect. This paper provides new evidence for Porter's hypothesis and can provide a reference for developing countries promoting green innovation through environmental policies and regulations.

Impact of green technology innovation based on IoT and industrial supply chain on the promotion of enterprise digital economy.

With the gradual deterioration of the natural environment, a green economy has become a competing goal for all countries. As a trend of green innovation development, the digital economy has become a research hotspot for scientists. In this article, we study the supply chain management of enterprises in green innovation and digital economy development and complete the identification and demand prediction of warehouse goods through the Internet of Things (IoT) and artificial intelligence (AI). As the stuff meets the goods detection and storage, we employ an intelligent method to detect and classify the goods. The demand prediction analysis is carried out based on historical data on goods demand in the enterprise. The absolute error between the prediction result and the actual demand within 1 week is less than 30 goods by the particle swarm optimization-support vector machine (PSO-SVM) method used in this article. First, the goods identification task is completed based on video surveillance data using YOLOv4, and the recognition rate is as high as 98.3%. This article realises enterprises' intelligent supply chain management through the intelligent identification of goods and the demand forecasting analysis of goods in the warehouse, which provides new ideas for green innovation and digital economy development.

Global Value Chain Participation and Green Innovation: Evidence from Chinese Listed Firms.

Green innovation is one of the most important approaches to prevent environmental pollution and foster sustainable development. Embedded in the global production networks, manufacturing firms have been found not only to be the main drivers of innovation but also the main polluters in developing countries. However, relatively few studies have systematically considered the effect of global value chain (GVC) participation on green innovation in the context of developing countries. By using a panel dataset of Chinese listed manufacturing firms, this study conducts panel data fixed-effect analyses and uses the instrumental variable two-stage least square model to investigate the effect of GVC participation on firms' green innovation performance. The results show that increased GVC participation leads to improved green innovation performance of Chinese firms. Meanwhile, further heterogeneity analyses show that the impact of GVC participation on green innovation is more pronounced for firms with greater financial constraints, state-owned firms and firms in labor- or pollution-intensive industries, located in the eastern regions of China. Therefore, this study sheds light on the implication that actively participating in GVC is the key to promoting sustainable growth when facing the need for transformation in developing countries.

Promoting sustainability through green innovation adoption: a case of manufacturing industry.

Green innovation is becoming more common among researchers and practitioners around the world due to environmental and social issues. Green innovation minimizes wastes and pollution, and also leads to financial gains and better image if implemented effectively. Nowadays, developing countries pay greater emphasis on environmental issues as their manufacturing industries are considered major contributors to pollution. Considering the case of a developing country (Pakistan), the study empirically identified the drivers of green innovation in the manufacturing industry. A hybrid methodology-Fuzzy Delphi method (FDM), interpretive structural modeling (ISM), and cross-impact matrix multiplication applied to classification (MICMAC)-was used to develop a novel framework for analyzing the green innovation drivers. At first, green innovation drivers were selected from past studies; they were further screened by applying Fuzzy Delphi approach. The MICAMAC and ISM results indicate that "cost reduction" and "government support" are the most important drivers motivating green innovation implementation in the Pakistani manufacturing industry, while a green image appeared as the least significant driver of green innovation adoption. The study's findings have significant implications for managers and policymakers to develop green strategies for manufacturing sector.

Can Green Innovation Improve Regional Environmental Carrying Capacity? An Empirical Analysis from China.

Green innovation has become an important driving force for China's economic transformation and development. This paper selects the 2010-2020 provincial-level regions in China as samples, and adopts a multi-indicator comprehensive evaluation method to comprehensively, objectively and scientifically evaluate the environmental carrying capacity of air pollution in two dimensions: natural resource endowment and human activity impact, and also measures and calculates the green innovation in each province, city and autonomous region to explore the specific impact of green innovation on environmental carrying capacity and its spatial spillover effect; it also explores the heterogeneous effects of green innovation on environmental carrying capacity under different pollution environments. The conclusions show that: (1) Green innovation has a positive impact on environmental carrying capacity. (2) There is a spatial spillover effect of green innovation on environmental carrying capacity. In other words, in areas with higher PM2.5 concentration, that is, lower environmental quality, green innovation has a weaker ability to improve environmental carrying capacity; in areas with lower PM2.5 concentration, that is higher environmental quality, green innovation has a stronger ability to improve environmental carrying capacity. (3) In the process of green innovation affecting environmental carrying capacity, PM2.5 plays the part of a mediating effect, indicating that green innovation is an intermediate transmission mechanism affecting environmental carrying capacity, and the results show that the absolute value of the short-term indirect effect is greater than the absolute value of the short-term direct effect, and the long-term direct effect is greater than the long-term indirect effect.

Does ambient air quality standard contribute to green innovation of enterprises in China? Implications for environmental protection and public health.

In the post-COVID-19 era, environmental pollution has been a serious threat to public health. Enterprises are in urgent need of enhancing green technology innovation as the main source of pollutant emissions, and it is necessary for governments to support green innovation of enterprises to reduce pollutant emissions and promote public health. In this context, this paper investigates whether the Ambient Air Quality Standard (AAQS) implemented in 2012 in China contributes to green innovation of enterprises, to provide implications for environmental protection and public health. By using panel data of Chinese A-share listed companies from 2008 to 2020, this study adopts the difference-in-difference model to analyze the policy impact of environmental regulation on green innovation of enterprises and its internal mechanism. The results show that AAQS has significantly improved the green innovation of enterprises. Furthermore, AAQS affects the green innovation of enterprises by virtue of two mechanism paths: compliance cost effect and innovation offset effect. On the one hand, AAQS leads to an increase in production costs of enterprises, thus inhibiting green innovation activities of enterprises. On the other hand, AAQS encourages enterprises to increase R&D investment in green technology, thus enhancing their green innovation. In addition, the impact of AAQS on firms' green innovation has heterogeneous characteristics. Our findings not only enrich the studies of environmental regulation and green innovation of enterprises but also provide policymakers in China and other developing countries with implications for environmental protection and public health improvement.

How Big Data Affect Urban Low-Carbon Transformation-A Quasi-Natural Experiment from China.

As a new factor of production, data play a key role in driving low-carbon and sustainable development relying on the digital economy. However, previous studies have ignored this point. Based on the panel data of 283 cities in China from 2007 to 2019, we investigated the construction of national big data comprehensive pilot zones (NBDCPZs) in China as a quasi-natural experiment, using the difference-in-differences (DID) model to empirically test the impact of NBDCPZ policies on urban low-carbon transformation. The following conclusions can be drawn: NBDCPZ construction significantly promotes urban low-carbon transformation, and a series of robustness analysis supports this conclusion. NBDCPZ constructions mainly promotes urban low-carbon transformation by stimulating urban green innovation and optimizing the allocation of urban resource elements. Compared with eastern cities, small and medium-sized cities, and resource-based cities, the construction of NBDCPZs can promote the low-carbon transformation of cities in central and western China, large cities, and non-resource-based cities. Further analysis shows that the construction of NBDCPZs can only improve the low-carbon transformation of local cities, with negative spatial spillover effects on the low-carbon transformation of surrounding cities. Therefore, in the future, it is vital to consider the promotion effect of the construction of NBDCPZs on the low-carbon transformation of local cities and prevent its negative impact on the low-carbon transformation of surrounding cities.

Environmental Regulations and Corporate Green Innovation in China: The Role of City Leaders' Promotion Pressure.

China and other emerging market countries have suffered from the problem of environmental pollution while developing rapidly in the past few decades. In recent years, many countries have introduced strict environmental regulations in order to achieve sustainable development. This paper discusses the relationship between environmental regulations and corporate green innovation from the perspective of regional leaders' promotion pressure. The empirical results show that direct policy regulation within the region stimulates green innovation on the part of enterprises, and the promotion pressure of city leaders has a further positive moderating effect on the positive correlation between environmental regulations and enterprises' green innovation. The conclusion of the study proves that a strict environmental policy can promote the effectiveness of an environmental performance appraisal system in the sustainable development plans of cities and enterprises. This paper not only reveals the influence path of official promotion pressure on the sustainable development of enterprises in the administrative area from the micro perspective but also sheds some light that may improve government governance and promote the transformation of enterprises.