Green investment, environmental regulation, and environmental performance

This study examines the mechanism of green investment and environmental regulation on corporate environmental performance and confirms the moderating effect of environmental regulation using a two-way fixed-effects panel model based on data from Chinese energy-listed companies from 2013 to 2022. The study reveals that (1) green investment significantly enhances corporate environmental performance. (2) Environmental regulation exhibits an inverted U-shaped effect on environmental performance. (3) Environmental regulation positively moderates the green investment-environmental performance nexus. (4) Green investment exerts a more pronounced positive impact on the environmental performance of state-owned enterprises and firms in central-western regions. Policymakers should adopt region-specific environmental strategies, while enterprises should increase green investments to achieve economy-environment synergy.