“Risk” or “Opportunity”? The High Sensitivity of Corporate Green Innovation to Environmental Policy Uncertainty: Evidence from China

China is constantly promoting green economic transformation through environmental policy adjustment. However, what impact the uncertainty brought about by adjustment will have on corporate innovation has become an issue worth paying attention to. Based option theory, this paper establishes a logical framework to explain of risk-taking and uses data A-share listed companies for empirical tests. The findings are as follows: in Chinese institutional context, enhances inputs outputs, effectively motivates corporations improve their levels. perceived firms opportunity rather than risk, enhancing outputs motivating mechanism test shows that increases level risk taking, thus stimulating innovation. mediating effect taking supported. heterogeneity analysis verifies asymmetric influence This study reveals important link between external environment emerging economies, implication governments need facilitate transition economy sound adjustments.