Effects of climate risk on corporate green innovation cycles

This paper studies how climate change affects green technology innovation among enterprises from the perspective of attention to global warming. The results show that abnormal temperatures significantly inhibit the green technology innovation output of local enterprises. Our conclusion still holds after a series of robustness checks. This effect is more pronounced for nonstate-owned enterprises and manufacturing enterprises. Moreover, CSR and information opacity aggravate the inhibitory effect of abnormal temperatures on green innovation. We find that abnormal temperatures increase the short-term environmental protection investment of enterprises in a region, which has a crowding out effect on R&D investment and inhibits green innovation. This study helps to deepen the understanding of climate risk and enterprise green innovation and provides an empirical basis for how to carry out environmental regulation to promote sustainable development.