Effects of Green Openness on Environmental Regulation Policies Stimulate Corporate Green Technological Innovation: A Study for Green Industry Policy

Abstract The growing importance of green and sustainable development has made it a priority for companies across all sectors to improve their green technology innovation. From 2012 to 2023, a sample of Chinese A-share listed enterprises will be chosen using the Green Industry Evaluation policy of the Ministry of Industry and Information Technology of China as a quasi-natural experiment. This study examines the effects of this voluntary environmental control regime on green technology innovation in firms using a progressive difference-in-differences (DID) approach. Businesses stepped up their green tech game after receiving Green Industry accreditation. In order to increase green technical innovation, the Green Industry policy increases digitalization Level, ESG practices, and financial efficiency in firms, according to the mechanism analysis. Additional research shows that less polluting industries, non-state-owned businesses, and corporations in the east and central regions benefit more from green technical innovation's incentive effects. The study provides appreciated visions for policy design and sustainable green development for developing markets in China. It indicates that the Green Industry voluntary environmental control regulation has a positive impact on corporate green technology innovation. Keywords: Sustainable green Industry, green technological innovation, sustainable development, DID model, ESG practices