Welcome to our research program website.
- Topic: Environmental Regulation and Firm's Green Innovation: Evidence From China
- Our research focuses on the evidence-based relationship between firms' decisions and environmental regulation. We study the impact of a unique environmental regulatory policy called mandatory participation in Cleaner Production Audit (CPA) programs on green innovation of Chinese listed companies.
The Introduction of the Cleaner Production Audit
- Earliest-launch-time: 2002
- Responsible Organization: Ministry of Environmental Protection, China
- Aim: To Address environmental problems that accompany rapid industrial growth, through regulating pollution-intensive firms in various sectors
- Obligation: Every participated company is obligated to disclose its pollutant emissions, conduct firm-wide CPA projects, and pass an assessment and an acceptance inspection conducted by local environmental agencies.
Key Point and Basic Results
- We distinguish environmental patents from others by matching the Chinese Patent Database with the green patent category reported by WIPO and created the firm-by-year green patent panel datasets. In the process of matching, we also classify the green patents into seven categories.
- In order to investigate the characteristics of different industries, we collected and cleaned the industry-level data about energy consumption and pollutant emission. We employed a Difference-in-Difference approach to verify the positive effect of mandatory CPA participation on firms green innovation.
- We identify the different kinds of cooperation body associated with its relative parent company to test the direct and indirect effects on green innovation.
- Using the empirical results, we find a significant positive link between CPA participation and firms’ application for green patents. The stimulative effect is stronger on the firms of higher energy intensity and waste emission.
Chinese Public Firm Patent Map
In order to illustrate our database to others, we re-sort the data and generate a city-by-year patent dataset. Based on the derived dataset, we create some figures:
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- Chinese Public Firm Patent Map-Basic Version
- Chinese Public Firm Patent Map-Comparison of the Firms Participating in CPA or NOT
- Chinese Public Firm Patent Map-Number of Patents Per Firm