AUTHOR=Ling Shixian , Gao Hongfu 

TITLE=How does climate risk matter for corporate green innovation? Empirical evidence from heavy-polluting listed companies in China

JOURNAL=Frontiers in Energy Research

VOLUME=Volume 11 - 2023

YEAR=2023

URL=https://www.frontiersin.org/journals/energy-research/articles/10.3389/fenrg.2023.1177927

DOI=10.3389/fenrg.2023.1177927

ISSN=2296-598X

ABSTRACT=Chinese heavy-polluting companies have been facing enormous challenges in responding to climate risk and energy transformation. This paper investigates the impact of climate risk on corporate green innovation in Chinese heavy-polluting listed companies from 2011 to 2020. The empirical results show that climate risk adversely affects green innovation in heavy-polluting companies, and this effect persists throughout a series of robustness and endogeneity tests. Climate risk may affect corporate green innovation through decreasing R&D investment, lowing resource allocation efficiency and increasing company risk. Climate risk has a greater negative impact on mid-western, state-owned and large-size heavy-polluting companies, but can be mitigated by the development of green finance, digital finance and marketization. These findings may help heavy-polluting companies fully utilize existing resources, policies, and channels for green innovation and mitigate climate risks.