Ecological rule of law and enterprise green innovation - Evidence from China's environmental courts

Abstract

Strengthening the rule of law is the cornerstone of ecological environmental protection. In the context of sustainable development, countries generally recognize the key role of the legal system in the protection of the ecological environment. Based on the perspectives of management, economics, and jurisprudence, this paper explores the impact and internal mechanism of the ecological legal system represented by the environmental protection court on the green innovation of enterprises. The study revealed that the ecological rule of law elevates enterprises' green innovation. The cost of environmental investment and enterprise strategy adjustment both reinforce the impact of the ecological rule of law on enterprises' green innovation. In the external environment of enterprises, the ecological rule of law on enterprises' green innovation has a more pronounced influence when Officials' appraisal pressure is high, and both the public and the government attach great importance to the environment. Within the internal environment of the enterprise, the ecological rule of law exerts a weaker force on the green innovation of the enterprise when the executives possess a low level of education, exhibits weak environmental awareness, and has a low shareholding ratio. The outcomes of this study might offer valuable insights for policymakers and enterprise managers in implementing environmental policies and in planning long-term green innovation for enterprises. Contribute to the strengthening of the legal system for ecological environmental protection in all countries.

Keywords: Ecological rule of law; Environmental court; Environmental regulation tools; Green innovation in enterprise.