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Green innovation under ambiguity and risk

Year: 2026

Type: article

Abstract: This study examines how ambiguity and risk shape green innovation across countries with different institutional environments. Using 163,391 firm-year observations from 35 economies during 1997–2021, we find that risk is positively associated with green innovation among G7 firms, whereas ambiguity shows no statistically significant association on average. Among non-G7 firms, ambiguity is positively associated with green innovation, while risk is negatively associated with it. These associations vary across countries. Our findings suggest that uncertainty may help explain the relationship between institutional environments and green innovation, with implications for policymakers and investors navigating the green transition.

Source: Journal of International Financial Markets Institutions and Money

DOI: 10.1016/j.intfin.2026.102426

Authors: Anna Min Du, Di Luo, Yun Luo, Xiaohan Yu

Institutions: University of Cambridge, Edinburgh Napier University, University of Southampton

Language: English

Topic: Environmental Sustainability in Business

Subfield: Marketing

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: hybrid

Estimated APC paid: $2,930

OpenAlex ID: W7225756788

FWCI:

Cites: 76

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