Work

Climate risk and adaptive green innovation: evidence from China

Year: 2025

Type: article

Abstract: Firms’ adaptation to climate risk is crucial for economic resilience. This paper links 2724 Chinese meteorological stations with A-share listed firms from 2006 to 2020 by geographic proximity. We construct a comprehensive climate risk measure via the entropy method and find that climate risk can promote green invention patent applications at the firm level. Mechanistically, climate risk drives green innovation by strengthening external government environmental regulations and internal corporate environmental responsibility. The effect is stronger in non-polluting industries and when firms receive more attention from social media. This study enhances understanding of firms’ positive adaptation to climate risk and offers new insight into green innovation drivers.

Source: China Journal of Accounting Research

DOI: 10.1016/j.cjar.2025.100446

Authors: Xudong Tang, Lin Wang, Lulu Pan

Institutions: South China University of Technology, Xiamen University, Hong Kong Polytechnic University

Language: English

Topic: Environmental Sustainability in Business

Subfield: Marketing

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Climate action, Industry, innovation and infrastructure

Open Access status: gold

Estimated APC paid: $1,800