Research Article

China’s New Environmental Protection Law and Green Innovation: Evidence from Prefecture-Level Cities

Table 1

Variables and definitions.

VariableDefinition

GinnovationThe share of green patents in total patents within a prefecture-level city
TreatA dummy variable that equals 1 if the mean value of PM2.5 in the prefecture-level city is greater than the mean value of environmental quality across all prefecture-level cities before 2015 and 0 otherwise
PostA dummy variable that is 1 after 2014 and 0 otherwise
AGDPThe natural logarithm of GDP per capita
FDIForeign direct investment divided by GDP
StructTertiary sector output divided by secondary sector output
ScienceThe natural logarithm of government subsidies for science and technology
IndustryThe natural logarithm of the number of industrial enterprises
POPThe natural logarithm of the population
PM25The natural logarithm of the PM2.5 concentration
Ginnovation1The number of green patents granted divided by the number of all patents granted
TownArea of urban construction land divided by the area of the prefecture-level city
HHIThe definition is shown in model 2
IPPThe natural logarithm of the number of first instances of intellectual property infringement in a province
SA−0.737 × Ln(Assets) + 0.043 × Ln(Asset)2 – 0.04 × Firm age
TreattA dummy variable that is 1 when an enterprise belongs to a heavily polluting industry and 0 otherwise
SizeThe natural logarithm of total assets
LevTotal debt divided by total assets
TangiTangible assets divided by total asset
ROANet profit divided by total assets
AgeThe natural logarithm of firm’s age
SOEA dummy variable that is 1 when an enterprises is controlled by government and 0 otherwise
TOP1The number of shares held by the controlling shareholder divided by the number of all shares
DualityA dummy variable that is 1 if the CEO and chair of the board are not separate and 0 otherwise