Environmental information disclosure and firms? green innovation: Evidence from China

Environmental information regulation has attracted growing attention from policymakers and scholars. We conduct a quasi-natural experiment based on the pollution information transparency index (PITI) assessment for Chinese cities in 2008, applying the difference-in-difference-indifferences estimation to identify the impact of PITI disclosure on firms' green innovation. Our results demonstrate that environmental information disclosure increases the green patenting activity of high-polluting firms. This positive effect is greater for firms with state ownership, nonforeign ownership, high-tech certification experience, and large firm size. We also find that increased corporate social responsibility following PITI disclosure is the main driving force for increased green patenting.