How does voluntary environmental regulation affect firm export performance? Evidence from the green factory identification in China

Purpose Against the backdrop of a global shift toward low-carbon development, this study aims to examine how green transformation in the manufacturing industry affects firm export performance (FEP). Design/methodology/approach The Green Factory Identification (GFI) is a critical policy mechanism that facilitates corporate environmental transition through standardized certification processes. Leveraging the implementation of GFI as a quasi-natural experiment, this study uses panel data on Chinese A-share listed manufacturing firms from 2008 to 2023 and uses a multi-period difference-in-differences (multi-period DID) model to evaluate the impact of GFI on FEP and its transmission channels. Findings The empirical results show that GFI significantly enhances FEP, and the reliability of the findings is demonstrated. Heterogeneity analysis reveals significantly stronger GFI policy effects on FEP among domestic enterprises, nonheavily polluting industries and capital-intensive industries. Mechanism analysis reveals that GFI promotes FEP through three primary channels: fostering technological innovation, optimizing resource allocation and enhancing corporate reputation. Common institutional ownership also plays a positive moderating role. Originality/value As global sustainability agendas advance, environmental institutional factors increasingly shape corporate behavior. In this context, this paper evaluates the micro effects of green manufacturing, expanding the research paradigm of its environmental impact. It also broadens the theoretical explanation of export behavior from an institutional perspective, providing a new analytical framework and empirical evidence for exploring the sustainable international competitiveness of firms.