We investigate the benefits of firms’ greenization from an economic vitality perspective. Using firm-level data from Chinese listed firms during the period 2013–2023, alongside with a theoretical evaluation of greenization as a way of accumulating green knowledge capital, we assess the impact of greenization on economic vitality related metrics and the underlying mechanisms. The findings reveal that: (1) Greenization significantly enhances various economic vitality metrics, primarily through a cost reduction effect and an ESG enhancement effect; (2) Digital transformation and corporate innovation amplify the positive impact of greenization on economic vitality; (3) Heterogeneity analyses indicate that large firms and high-tech firms derive greater benefits from green strategies; (4) A series of robustness tests confirm the consistency of the findings. We provide implications for policymakers and firms to harness greenization as an environmental and economic strategy.
Wu et al. (Fri,) studied this question.