Research On The Correlation Between Environmental Cost,Green Innovation And Enterprise Performance

President Xi Jinping pointed out that under the severe situation of global climate issues,China should achieve carbon peak and carbon neutrality,which points out the specific direction for the sustainable development path and green transformation strategy of Chinese enterprises in the future.Under the current environmental situation,enterprises must pay attention to both economic benefits and energy conservation and emission reduction,practice the ESG(Environment,Society and Governance)concept,and drive enterprises to develop in a systematic,collaborative and holistic way with high quality.Because of its production characteristics,heavy pollution enterprises in energy conservation and environmental protection by the government and all walks of life eager to promote the direction of high standards,strict requirements.In the future,enterprise managers need to keep in mind the red line and bottom line of social responsibility while seeking economic development,pay attention to the importance of environmental cost accounting,standardize and strengthen environmental cost management,and resolutely shoulder the main responsibility of energy conservation and emission reduction governance.Heavy pollution industry is the key object of environmental protection control,but also an important subject of market economy.Based on the data of heavy pollution listed enterprises,this paper conducts theoretical and empirical research and analysis.Theoretically,based on porter hypothesis,sustainable development theory and externality theory,this paper defines the concepts of environmental cost and green innovation,and establishes a theoretical framework with environmental cost--green innovation--enterprise performance as the main body.On the basis of theoretical analysis,research hypothesis is proposed to explore whether heavy pollution enterprises can improve environmental awareness,participate in environmental cost accounting more actively,reduce the loss caused by resource waste and pollution,so as to play a positive role in the production and operation of enterprises.At the same time,this study makes assumptions about whether green innovation investment can bring economic development of enterprises by improving resource use efficiency and promoting technological progress,and whether green innovation plays a moderating role in the impact of environmental costs on enterprise performance.Under the guidance of the externality theory,this paper establishes the environmental cost accounting system of heavy pollution enterprises,which accounts the internal environmental cost and external environmental cost respectively.To be specific,the steps of internal environmental cost accounting are improved by combining activity-based costing(ABC)and life cycle costing(LCC),and the directional distance function model(DDF)is constructed to measure the shadow price of pollutants,so as to calculate the environmental cost of heavily polluted enterprises.Finally,this paper uses multiple regression model to test the relevant mechanism of environmental cost,green innovation and firm performance,and passes endogeneity test and robustness test to enhance the reliability of empirical results.In empirical study,this article selects the heavy pollution industry from 2016 to2020,70 listed companies,a total of 350 samples as the specific object of study,the related hypothesis is tested empirically shows:(1)the enterprise environment cost and enterprise performance has positive correlation relationship: within the enterprise environment cost can significantly shadow business performance,promotion enterprise’s performance.(2)The external environmental cost of heavy pollution enterprises can also increase enterprise performance,but compared with the internal environmental cost,the upward trend is weaker.(3)The addition of green innovation moderating variable makes the promotion effect of environmental cost on enterprise performance more significant.The main innovations of this paper are as follows :(1)variable selection.Based on the externality theory,this paper constructs the environmental cost accounting system of heavy pollution industry,and also considers the internal and external environmental cost content of enterprises.Through more scientific measurement and accounting,the selection of environmental cost variables can be more accurate,and the impact of internal and external environmental costs on enterprise performance can be considered respectively.(2)Research perspective.It enriches the research on the influence mechanism of environmental cost and enterprise performance and verifies the positive moderating effect of green innovation in the influence mechanism.The research results of this paper can help enterprises boost their confidence in green transformation,strengthen their awareness of green innovation,and provide data support for heavily polluting enterprises to actively undertake corporate social responsibility and accounting for environmental costs,so as to better pursue longterm development.At the same time,it provides practical evidence for relevant departments to formulate environmental regulation and green innovation support policies,and promote the harmonious development of economy and environment.