ORIGINAL RESEARCH
Firm’s Divergent Green Innovation Response
to Environmental Tax Reform: the Moderating
Role of Corporation Social Responsibility
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1
School of Finance and Economics, Anhui Science and Technology University, Bengbu, Anhui, 233100, China
2
College of Business, Shanghai University of Finance and Economics, Shanghai, 200433, China
3
Institute of Finance and Economics, Shanghai University of Finance and Economics, Shanghai 200433, China
Submission date: 2023-08-12
Final revision date: 2023-09-28
Acceptance date: 2023-10-10
Online publication date: 2024-01-24
Publication date: 2024-03-18
Corresponding author
Jiahong Qin
Shanghai University of Finance and Economics, China
Pol. J. Environ. Stud. 2024;33(3):2891-2900
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ABSTRACT
Existing studies have shown that environmental tax reform (ETR) in China has a significant effect
on green innovation (GI), but there is no in-depth study on the heterogeneous effects of different types
of green innovation. Using the data of listed companies in China’s high-pollution manufacturing
industry from 2012 to 2020, this paper adopts the difference in differences (DID) method to study
the differentiation effect of ETR’s signal effect and resource crowding-out effect on different green
innovation. The empirical results indicate that ETR may significantly improve green product innovation
through signaling effect, while reducing green process innovation through resource crowding-out
effect. Further moderating effect studies show that enterprises with high institutional corporation social
responsibility (ICSR) strengthens the positive effect of ETR on green product innovation. However,
enterprises with high technical corporation social responsibility (TCSR) enhances the negative impact
of ETR on green process innovation. This paper offers valuable implications for government green
governance and enterprises' green transformation.