1. Does informal environmental regulation matter? Evidence on the different impacts of communities and ENGOs on heavy-polluting firms' green technology innovation.
- Author
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Guo, Linying, Hu, Chuan, Fan, Mengjuan, Mao, Jianghua, Tian, Meng, Wang, Zihao, and Wei, Yuanying
- Subjects
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ENVIRONMENTAL regulations , *GREEN technology , *TECHNOLOGICAL innovations , *GOVERNMENT business enterprises , *ENVIRONMENTAL policy , *BUSINESS enterprises - Abstract
Firms, especially heavy-polluting firms, are facing intense pressure from informal environmental regulations, which play a unique role in promoting heavy-polluting firms' green technology innovation (GTI). Communities and ENGOs are two important informal environmental regulation entities that have different influence mechanisms to stimulate heavy-polluting firms in GTI. The research results indicate that heavy-polluting firms' GTI follows an inverted U-shape as the number of communities around these firms increases, whereas it follows a positive linear correlation as the number of ENGOs increases. Interestingly, ownership types and administrative hierarchy distance positively moderate the curvilinear and linear relationships. State-owned enterprises (SOEs) are more inclined to maintain their legitimacy by fulfilling communities' and ENGOs' environmental requirements than non-SOEs. A shorter administrative hierarchy distance means that firms are supervised by high-level governments. The autonomy effect of lower-level governments does not affect the vigorous enforcement of environmental policies, which also enhances these two relationships. [ABSTRACT FROM AUTHOR]
- Published
- 2024
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