Does Corruption Hurt Green Innovation? Yes – Global Evidence from Cross-Validation

Green innovation is essential for human beings to balance growth and climate change mitigation. The corruption-green innovation nexus has been studied by two existing studies, but the relative weak econometrical work and the lack of exploration in the context of inter-government cooperation on global climate change call for a revisited investigation. Our research robustly tests and confirms that corruption has a significantly negative effect on green innovation, which overturns the opposing conclusion of the previous global examination. Moreover, we find that the signing of international environmental agreements (IEAs) mitigates corruption's negative effect in the short term, whereas IEA's entry into force deteriorates this hindering impact in the long term. Such a divergence may originate from a change in the expectation of economic entities in the government's enforcement quality of environment policies issued for meeting IEA's emission target. Lastly, we provide several suggestions for dealing with climate change more effectively from the perspective of global governance.