This study investigates the effect of green innovation on environmental performance and the moderating role of ownership structure. A generalized method of moments regression approach was applied to a sample of 68 firms operating in the United Arab Emirates (UAE), observed from 2012 to 2024. The results indicate a significant and positive relationship between green innovation and environmental performance. In addition, institutional and state ownership strengthen this relationship. Splitting the sample according to key UAE characteristics (firms listed on the Abu Dhabi Securities Exchange versus the Dubai Financial Market, and the pre-UAE Vision versus post-UAE Vision period) as well as economic conditions (COVID-19) provides further interesting results. Our findings remain robust across alternative estimation methods. The results show significant differences in how ownership structures moderate green innovation effectiveness across the two markets. We also find that green innovation’s effectiveness on environmental performance significantly intensifies after the UAE Vision’s announcement. Our findings also indicate that the positive impact of green innovation on environmental performance becomes more pronounced in the post-COVID period. This paper provides an in-depth assessment of the role of sustainable tools (particularly green innovation) in enhancing environmental performance in the United Arab Emirates. It offers valuable insights for board members, CEOs, regulators, and policymakers who remain undecided or hesitant about implementing sustainability-oriented practices.
Gharbi et al. (2026) studied this question.