Driving the Green Transformation of Enterprises: The Role of Patent Insurance

ABSTRACT We verified the effect of patent insurance policy implementation on corporate green transformation, using a dataset of Chinese‐listed companies from 2007 to 2019. Using double/debiased machine learning and text analysis, we found that the pilot policy of patent insurance has a significant positive impact on the green transformation of enterprises. This effect is significant in heavily polluting industries, eastern regions, state‐owned enterprises, and companies in a growth stage. The patent insurance pilot policy promotes corporate green transformation by alleviating financing constraints, reducing operational risks, and increasing green output.