The impacts of ESG policy on clean technology innovation: a gateway to promote renewable energy transition

In the face of the global mandate of seeking an economic paradigm that reconciles growth with environmental preservation, it is imperative to find ways to accelerate the renewable energy transition. Using the zero-inflated negative binomial distribution model, this study finds that corporate ESG is significantly positively associated with clean technology innovation. Further incorporating the three zero-inflated factors of enterprise size, digital transformation, and government environmental attention in the threshold model, it is found that enterprise size, digital transformation, and deepening environmental concern can all play the role of gas pedals in the positive contribution of ESG to cleantech innovation. The heterogeneity analysis suggests that no difference in the nature of enterprises’ ownership in terms of how cleantech innovation is positively affected by ESG performance. The ESG performance of enterprises has a more pronounced effect on the enhancement of cleantech innovation in heavily polluting enterprises than enterprises in non-heavily polluting industries, which in turn show a positive response to green transformation and improvement efforts. This paper provides theoretical analysis and empirical evidence to make a thin force for enterprises to facilitate renewable energy transformation.