How does green innovation determine corporate physical investment? New empirical evidence

Due to the escalating issue of global warming and other environmental concerns, green innovation has garnered significant attention. However, there is a dearth of literature addressing the impact of green innovation on industrial investment. Therefore, the present study aims to investigate how green innovation affects corporate physical investment. We utilize a wide array of financial data from a panel comprising 11 Asian economies and employ the system GMM (generalized method of moments) to test the underlying hypothesis. The empirical findings reveal a positive and statistically significant effect of all proxies for green innovation, including patent registrations, the development of environmental technologies, innovation intensity, and green growth innovation, on corporate physical investment. The empirical analysis yields a crucial policy implication, emphasizing the importance of prioritizing green innovation and the adoption of modern technology. These initiatives not only boost investment volumes but also contribute to achieving environmental sustainability. By exploring the intricate relationship between green innovation and corporate physical investment, the current study introduces innovative insights to the literature on financial and environmental economics.

• Publication year

  2025

• Venue

  Technological and Economic Development of Economy

• Publication date

  2025-09-03

• Fields of study

  Not labeled

• Identifiers
  DOI 10.3846/tede.2025.24455
• External record

  Open on Semantic Scholar

• Source metadata

  Semantic Scholar

• No claims are published for this paper.

• No concepts are published for this paper.

• Green Innovation's Impact on Corporate Financing: New Insights from BRICS Economies

  2024cited by this paper
• Exploring the moderating role of financial development in environmental Kuznets curve for South Africa: fresh evidence from the novel dynamic ARDL simulations approach

  2023cited by this paper
• The European Central Bank and green finance: How would the green quantitative easing affect the investors' behavior during times of crisis?

  2023cited by this paper
• Corporate Social Responsibility (CSR) Performance and Green Innovation: Evidence from China

  2022cited by this paper
• Role of Financial Development for Sustainable Economic Development in Low Middle Income Countries

  2022cited by this paper
• Investigating the sustainable development goals derived due to adoption of circular economy practices.

  2022cited by this paper
• Corporate environmental governance scheme and investment efficiency over the course of COVID-19

  2022cited by this paper
• Interlinkage between Corporate Social, Environmental Performance and Financial Performance: Firm-mediators in a Multi-country Context

  2022cited by this paper
• Drivers of environmental degradation in Turkey: Designing an SDG framework through advanced quantile approaches

  2022cited by this paper
• Energy transition and diversification: A pathway to achieve sustainable development goals (SDGs) in Brazil

  2022cited by this paper
• Environmental Policy and Green Innovation: Evidence from Heavily Polluting Firms in China

  2022cited by this paper
• Composite fiscal decentralisation and green innovation: Imperative strategy for institutional reforms and sustainable development in OECD countries

  2022cited by this paper
• Sustainable development: The impact of political risk, macroeconomic policy uncertainty and ethnic conflict

  2022cited by this paper
• Environmental regulation, foreign investment, and green innovation: a case study from China

  2022cited by this paper
• A meta-analysis of environmental innovation and firm performance

  2021cited by this paper
• CSR & financial performance: Facing methodological and modeling issues commentary paper to the eponymous FRL article collection

  2021cited by this paper
• Green credit regulation, induced R&D and green productivity: Revisiting the Porter Hypothesis

  2021cited by this paper
• Does green investment improve energy firm performance?

  2021cited by this paper
• Green innovation: A systematic literature review

  2021cited by this paper
• How does innovation efficiency contribute to green productivity? A financial constraint perspective

  2021cited by this paper
• Who is financing corporate green innovation?

  2021cited by this paper
• How do industrial land price and environmental regulations affect spatiotemporal variations of pollution-intensive industries? Regional analysis in China

  2021cited by this paper
• Do Sustainability Innovation and Firm Competitiveness Help Improve Firm Performance? Evidence From the SME Sector in Vietnam

  2021cited by this paper
• Government green environmental concerns and corporate real investment decisions: Does financial sector development matter?

  2021cited by this paper
• Is blockchain able to enhance environmental sustainability? A systematic review and research agenda from the perspective of Sustainable Development Goals (SDGs)

  2021cited by this paper
• Dynamics between green innovation and environmental quality: new insights into South Asian economies

  2021cited by this paper
• Carbon risk and corporate investment: A cross-country evidence

  2021cited by this paper
• Investigating green investment payoff in China

  2021cited by this paper
• Leadership, green innovation, and green creativity: a systematic review

  2021cited by this paper
• Estimating the global risk of anthropogenic climate change

  2021cited by this paper
• Heterogeneous environmental regulation and industrial structure upgrading: evidence from China

  2021cited by this paper
• Does green innovation damage financial performance of oil and gas companies

  2021cited by this paper
• Demand for green finance: Resolving financing constraints on green innovation in China

  2021cited by this paper
• Impact of environmental regulation on green growth in China’s manufacturing industry–based on the Malmquist-Luenberger index and the system GMM model

  2020cited by this paper
• The impact of environmental innovation on carbon dioxide emissions

  2020cited by this paper
• Economic policy uncertainty and corporate investment: Evidence from the U.S. hospitality industry

  2020cited by this paper
• Empirical generalizations in eco-innovation: A meta-analytic approach

  2020cited by this paper
• Does green innovation mitigate financing constraints? Evidence from China’s private enterprises

  2020cited by this paper
• Corporate reputation and social sustainability in the early stages of start-ups: A theoretical model to match stakeholders' expectations through corporate social commitment

  2020cited by this paper
• Corporate social responsibility and eco‐innovation: The triple bottom line perspective

  2020cited by this paper
• Do the macroeconomic factors influence the firm's investment decisions? A generalized method of moments ( GMM ) approach

  2020cited by this paper
• Oil shocks, competition, and corporate investment: Evidence from China

  2020cited by this paper
• How environmental innovation influences firm performance: A meta‐analytic review

  2020cited by this paper
• Environmental innovation, knowledge spillovers and policy implications: A systematic review of the economic effects literature

  2019cited by this paper
• Do corporate green investments improve environmental performance? Evidence from the perspective of efficiency

  2019cited by this paper
• Different types of environmental regulations and the heterogeneous influence on the environmental total factor productivity: Empirical analysis of China's industry

  2019cited by this paper
• Green innovation and organizational performance: The influence of big data and the moderating role of management commitment and HR practices

  2019cited by this paper
• Urbanization, economic growth and environmental pollution: Evidence from China

  2019cited by this paper
• Leverage and corporate investment – Evidence from Vietnam

  2019cited by this paper
• Does corporate R&D investment affect firm environmental performance? Evidence from G-6 countries

  2019cited by this paper
• Environmental policy instruments, environmental innovation and the reputation of enterprises

  2018cited by this paper
• The impact of leverage on investment decisions for South African firms with different growth opportunities

  2018cited by this paper
• Green Innovation Strategy and Green Innovation: The Roles of Green Creativity and Green Organizational Identity

  2018cited by this paper
• Economic growth, natural resources, and ecological footprints: evidence from Pakistan

  2018cited by this paper
• Economic growth model, structural transformation, and green productivity in China

  2017cited by this paper
• Eco-innovation, sustainable supply chains and environmental performance in European industries

  2017cited by this paper
• The Impact of Environmental Regulation on Firm and Country Competitiveness: A Meta-analysis of the Porter Hypothesis

  2017cited by this paper
• Persistent openness and environmental innovation: An empirical analysis of French manufacturing firms

  2017cited by this paper
• Firm Age, Investment Opportunities, and Job Creation: Firm Age, Investment Opportunities, and Job Creation

  2017cited by this paper
• The Importance of the Diverse Drivers and Types of Environmental Innovation for Firm Performance

  2016cited by this paper
• What drives eco-innovation? A review of an emerging literature

  2016cited by this paper
• Towards green growth: How does green innovation affect employment?

  2016cited by this paper
• Political uncertainty and corporate investment: Evidence from China

  2016cited by this paper
• Eco-innovation: insights from a literature review

  2015cited by this paper
• What drives successful implementation of pollution prevention and cleaner technology strategy? The role of innovative capability.

  2015cited by this paper
• Essay

  2014cited by this paper
• The link between eco-innovation and business performance: a Taiwanese industry context

  2014cited by this paper
• Diffusion of eco-innovations: A review

  2014cited by this paper
• Depletion of fossil fuels and anthropogenic climate change—A review

  2013cited by this paper
• Green innovation in technology and innovation management – an exploratory literature review†

  2012cited by this paper
• The Influence of Governance on Investment: Evidence from a Hazard Model

  2011cited by this paper
• The entrepreneur-environment nexus: uncertainty, innovation and allocation

  2010cited by this paper
• Environmental innovation and environmental performance

  2010cited by this paper
• Eco-Innovation: When Sustainability and Competitiveness Shake Hands

  2009cited by this paper
• Attributing physical and biological impacts to anthropogenic climate change

  2008cited by this paper
• Measurement of green productivity and its improvement

  2004cited by this paper
• Bounds testing approaches to the analysis of level relationships

  2001cited by this paper
• Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations

  1991cited by this paper
• Distribution of the Estimators for Autoregressive Time Series with a Unit Root

  1979cited by this paper
• Environmental regulations and capital investment: Does green innovation allow to grow?

  year unknowncited by this paper

• No citing papers are available for this paper.