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September 10, 2025SustainabilityOpen Access

Environmental Governance Innovation and Corporate Sustainable Performance in Emerging Markets: A Study of the Green Technology Innovation Driving Effect of China’s New Environmental Protection Laws

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DID analysis shows environmental governance improves corporate performance in China, highlighting green technology's role.

Implementation of the Environmental Protection Law significantly improves performance of heavily polluting enterprises.
Green technology innovation acts as a partial intermediary in enhancing corporate sustainable performance.
The study utilizes DID to analyze data from Chinese A-share listed companies between 2012 and 2023.
Results indicate significant policy effect heterogeneity, particularly among larger firms and those in eastern regions.

Jide et al. (2025) studied this question.

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