Abstract：Basing on a sample of A-share in the period of 2004 to 2013, we analyze the impact of firm-level eco-innovation on profitability.To control the selection bias, we match every eco-innovation firm with the non-adopter according to a set of ex ante characteristics such as year, industry and profitability, and apply Difference-in-Difference (DID) method which addresses time series and cross-sectional influences to compare performance between eco-innovation firms and non-adopters. Results indicate that externality reducing innovation firms would experience profitability loss while regulation intensity, export status and industry competition intensity strengthen this negative effect; energy and resource efficiency innovation firms are financially rewarded, and this is especially the case for export firms or firms in the highly competitive industry. This study sheds light on the relationship between eco-innovation and profitability from the perspectives of eco-innovation typologies as well as the institutional pressure, thus offering certain reference value to top management in terms of eco-innovation decision.
2016, Vol. 13 
