Awareness begets action: public climate attention and corporate green innovation

Abstract

In this study, we examine the effect and mechanism of public climate attention on corporate green innovation. We find that green innovation strengthens with increasing degrees of public climate attention. Moreover, the impact of public climate attention on green innovation is more significant when enterprises face more green development pressure and hold more resource reserves. Further investigation reveals that public climate attention contributes more to green innovation in samples of state-owned enterprises (SOEs), non-high-tech companies, and under more frequent extreme climate disasters. Finally, based on the differences in firm motivation for engaging in green innovation, we also explore the influence of public climate attention on firms’ substantive and strategic green innovations and find that public climate attention significantly contributes to both types of innovation. Our research results are of theoretical and practical significance for achieving dual-carbon goals and promoting sustainable social development and high-quality economic development.

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