Probe - Accounting, Auditing and Taxation

Does fiscal decentralization promote corporate green technology innovation under comprehensive green transition?

Hongyan Zhang

School of Finance and Public Administration, Anhui University of Finance and Economics

DOI: https://doi.org/10.59429/paat.v7i4.12463

Keywords: fiscal decentralization; corporate green technology innovation; foreign direct investment; energy conservation and environmental protection expenditures

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Abstract

Green innovation not only profoundly reflects the core concepts of green development and sustainable development but also closely meets the requirements of high-quality economic development in the current era. Using data from A-share listed companies, this paper constructs a two-way fixed effects model to explore the specific impact of fiscal decentralization on corporate green technology innovation. The results show that fiscal decentralization promotes corporate green technology innovation, which can affect the level of corporate innovation through two channels: foreign direct investment and local governments' energy conservation and environmental protection expenditures.

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