Constraining or Enabling Green Management and Technological Innovation: How Do Firms Respond to Climate Policy Uncertainty?

This research delves into firms' green innovation response to climate policy uncertainty (CPU). We distinguish green management innovation from green technological innovation and investigate the moderating effect of belonging to a high-energy-consuming industry and investors' climate attention. Based on Chinese A-share listed firms in 2008-2022, we reveal a positive influence of CPU on green management innovation but a more limited effect on green technological innovation. However, firms' green technological innovation response is found to be more positive in the high-energy-consuming industry, and increased climate attention by investors strengthens CPU's facilitating effect on both green management and green technological innovation. In terms of longer-term outcomes, we reveal that firms' participation in green technological innovation prompted by CPU significantly bolsters firms' competitive advantage. Our research offers novel insights into the inconsistent debate relationship between CPU and green innovation and influencing contextual factors.