Optimal environmental investment strategies for enterprise green technology innovation: An empirical study based on multiple drive models

• Published in: Journal of environmental management 2024-11, Vol.370, p.122624, Article 122624
• Main Authors: Zhao, Mingtao, Fu, Xuebao, Du, Juntao, Cui, Lianbiao
• Format: Article
• Language: English
• Subjects: China; Conservation of Natural Resources; Economic Development; Economic growth; Environment; Environmental investments; Green technology innovation; Inventions; Investments; Models, Theoretical; Optimal strategies; Sustainable Development; Technology
• ISSN: 0301-4797; 1095-8630; 1095-8630
• DOI: 10.1016/j.jenvman.2024.122624

Enterprise green technology innovation (GTI) is vital for global sustainable development. However, the optimal strategies are needed to understand how environmental investments (EIs) impact enterprise GTI. This study adopts multiple drive models to explore the impact of EIs on the GTI of A-share listed enterprises in China from 2008 to 2022. Our results show that EIs significantly promote enterprise GTI, and these findings are robust. Heterogeneity analysis reveals that non-state-owned enterprises (non-SOEs) and enterprises in the eastern and western regions benefit more from EIs in promoting GTI. Labor-intensive combinations of EIs contribute to the growth of enterprise GTI quantity, while technology-intensive combinations of EIs are detrimental to the growth of enterprise GTI quality. Specifically, the intermediary conduction mechanism identifies that EIs substantially enhance enterprise GTI through financial constraints, research and development (R&D) investment, and environmental awareness. The threshold test mechanism demonstrates that EIs inhibit enterprise GTI when the price-to-book (P/B) ratio crosses a certain threshold; however, EIs promote enterprise GTI once the book-to-market (B/M) ratio crosses the threshold. Our findings can provide valuable references for governments and enterprises, helping to promote environmentally sustainable development and economic growth. •The differences in the enterprise GTI optimal strategies under different modes.•EIs has direct and indirect impact on the optimal strategies of enterprise GTI.•EIs impact enterprise GTI through intermediary conduction mechanism.•The threshold test mechanism illustrates that EIs impact enterprise GTI.•The governments and enterprises should bolster GTI for sustainable development.