Green Innovation

71 Pages Posted: 21 Sep 2022 Last revised: 28 Oct 2022

See all articles by Syed Walid Reza

Syed Walid Reza

SUNY at Binghamton

Yanhui Wu

Queensland University of Technology - School of Economics and Finance; Financial Research Network (FIRN)

Date Written: October 27, 2022


We find that the average value of clean-technology (green) innovation is 37–52% higher due to the effects of environmental regulations, a firm’s exposure to regulatory risk, its knowledge stock of clean technology, and product market competition. This value, however, has declined due to the sheer number of green innovation during the 1963–2019 period. Evidence on firms’ operating performance, toxic releases, and EPA enforcement cases indicates that benefits arise from cost effective operating processes and compliance with imminent EPA emission standards. Overall, our results suggest that green innovation increases firm value.

Keywords: Green, Clean Technology, Environment, Toxic Release, EPA, CSR, Investment

JEL Classification: G30, L25, Q55, Q58

Suggested Citation

Reza, Syed Walid and Wu, Yanhui, Green Innovation (October 27, 2022). Available at SSRN: or

Syed Walid Reza (Contact Author)

SUNY at Binghamton ( email )

P.O. Box 6015
Binghamton, NY 13902-6015
United States

Yanhui Wu

Queensland University of Technology - School of Economics and Finance ( email )

GPO Box 2434
2 George Street
Brisbane, Queensland 4001

Financial Research Network (FIRN)

C/- University of Queensland Business School
St Lucia, 4071 Brisbane


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