This study empirically investigates the drivers of green product innovation (GPI) among regional export-oriented industrial enterprises (REIEs) in China from 2004-2018. Using panel data from 30 provinces, the researchers find that increased regional green production capacity directly boosts GPI. Regional green technology level and human capital accumulation act as indirect drivers. Environmental regulations and green credit positively moderate the relationship between capacity increases and GPI. Threshold regression reveals an inverted U-shaped relationship between GPI and green production capacity, foreign direct investment, digitization, and trade openness, while local government expenditure shows diminishing marginal utility.

Liping Qiu, Lihua Yang, Haiyan Zhou, Feng Hu