Search

Simultaneously achieving economic development and environmental protection is a shared global challenge. While the positive effect of environmental regulations on protecting the environment has been widely recognized, the attention paid to low-carbon governance and corporate green transformation remains insufficient. Based on the two-stage least square regression model (2SLS) of instrumental variables, this paper utilizes panel data from China to identify the influence mechanism of government low-carbon governance on enterprise green development. It explores the effect of low-carbon governance on enterprise green development from the perspective of fiscal decentralization. The findings show that (1) Low-carbon governance significantly promotes corporate green development, primarily through improving industrial structure and technological innovation; (2) Low-carbon governance notably promotes the green development of private enterprises but has little effect on state-owned enterprises. There are also geographical differences, and the results are better in Eastern China than in the Central and Western parts of China; (3) Fiscal decentralization at both central and local levels inhibits the effect of low-carbon governance on driving corporate green development by causing a mismatch of human resources. Therefore, to promote corporate green development, low-carbon governance must prioritize green development, actively guide industrial structural upgrading and enterprise technological innovation, implement differentiated low-carbon governance measures tailored to different ownership enterprises, and optimize the assessment indicators for fiscal decentralization. This paper helps deepen the understanding of the relationship between government low-carbon governance and enterprise green development in developing countries. It can be used as a reference for government departments to formulate relevant policies. [ABSTRACT FROM AUTHOR]

For urgent need to the transition to sustainable development, it is of great significance to explore the driving role of green credit policies in innovation performance. This study uses a sample of Chinese A-share listed companies from 2004 to 2019 and constructs a quasi-natural experiment based on the Green Credit Guidelines issued by the China Banking Regulatory Commission in 2012. PSM-DID method is employed to examine the innovation impact of green credit policies in both green credit-restricted and non-restricted industries, thereby exploring the its mechanism of influence on firm innovation performance. The results show that after the implementation of Guidelines, it promotes a company's innovation output, significantly enhances its innovation performance, especially in terms of quantity-based incentives. However, the incentive effect on quality-based incentives is relatively limited. Secondly, by increasing the level of risk-taking within the enterprise and strengthening external environmental regulations, the green credit policy can further enhance its promotion effect on corporate innovation performance. Finally, the promotion effect of green credit policies is more significant for state-owned enterprises and large-scale enterprises. The research results help to break through the bottleneck of corporate innovation with the coordination of environmental protection and economy, which further improve the sustainability of economic development. [ABSTRACT FROM AUTHOR]