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Economic Change and Restructuring

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01-04-2024

Does the political promotion incentive of state-owned enterprise executives facilitate green innovation?

Authors: Yiyang Gu, Peng Wu, Lei Gao

Published in: Economic Change and Restructuring | Issue 2/2024

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Abstract

There is now a global consensus on the imperative need for energy transition and sustainability. Green innovation has emerged as a key driver to achieve these goals, and governments have recognized the importance of facilitating it. Within this context, we offer a unique perspective by examining the impact of political promotion incentives on green innovation among executives of state-owned enterprises (SOEs), shedding light on the government’s role in fostering energy transition and sustainable practices. Our findings demonstrate that governments can effectively foster a commitment to green innovation among SOE executives by integrating green indicators into the criteria used for political promotions. Notably, we find that this positive influence is more prominent when the likelihood of political promotion is higher. We provide valuable recommendations for policymakers seeking to facilitate energy transition and drive sustainable development, particularly for economies with a substantial SOE presence.

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Title: Does the political promotion incentive of state-owned enterprise executives facilitate green innovation?
Authors: Yiyang Gu
Peng Wu
Lei Gao
Publication date: 01-04-2024
Publisher: Springer US
Published in: Economic Change and Restructuring / Issue 2/2024
Print ISSN: 1573-9414
Electronic ISSN: 1574-0277
DOI: https://doi.org/10.1007/s10644-024-09671-4

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