Green Drive Force, Energy Efficiency, and Corporate Sustainable Development

This study investigates how improvements in energy efficiency (EE) contribute to the sustainable growth rate (SGR) of manufacturing firms. Using panel data from Chinese A-share listed companies between 2012 and 2023, we provide empirical evidence that higher EE significantly enhances firms’ ability to maintain long-term and stable growth. Furthermore, the findings reveal that executives’ green perception (EGP) and environmental protection investment (EPI) strengthen this positive relationship, while an excessive green innovation bubble (GIB) weakens it. By integrating insights from corporate governance and sustainability research, this study highlights the critical roles of managerial orientation, resource allocation, and innovation quality in shaping the pathway from EE to sustainable growth. The results extend the understanding of how micro-level corporate actions support global sustainability goals and provide a nuanced perspective on balancing efficiency and innovation. Practically, the findings suggest that managers should embed EE into strategic decisions, while policymakers should strengthen financial and institutional support to facilitate corporate green transition. This research contributes to the literature by offering new evidence from an emerging market context and by demonstrating the multidimensional mechanisms through which EE fosters corporate sustainable development.