Systems

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27 pages, 665 KB

Open AccessArticle

Does Policy Uncertainty Distort Green Innovation? Evidence from Heavy-Polluting Firms in China

by Dicheng Wang, Han Li and Qian Zhang

Systems 2026, 14(9), 1082; https://doi.org/10.3390/systems14091082 - 2 Sep 2026

Green innovation is essential to the low-carbon transition, but aggregate patent counts may conceal changes in the technological quality of corporate innovation. Using this observation as a starting point, this study asks how economic policy uncertainty (EPU) affects green innovation and its quality [...] Read more.

Green innovation is essential to the low-carbon transition, but aggregate patent counts may conceal changes in the technological quality of corporate innovation. Using this observation as a starting point, this study asks how economic policy uncertainty (EPU) affects green innovation and its quality structure among Chinese heavy-polluting firms. Using panel data on A-share listed firms from 2010 to 2023, we distinguish green invention patents from green utility model patents and estimate two-way fixed-effects models. We find that EPU significantly reduces substantive green innovation and weakens the relative position of green invention patents, even though strategic green innovation does not decline correspondingly. These patterns hold across alternative patent measures, quality indicators, EPU specifications, and placebo tests. EPU is also associated with tighter financing constraints, higher cash holdings, and weaker bank credit access, and among these three responses, financing constraints offer the most robust independent explanation. Taken together, the results suggest that policy uncertainty can alter the composition of green innovation even when visible patenting activity is maintained, underscoring the importance of stable policy expectations and sustained financing for substantive green innovation. Full article

(This article belongs to the Special Issue Sustainable Strategies and Organizational Transitions for Green Economy)

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38 pages, 3263 KB

Open AccessArticle

One Plus One Is Greater than Two for Multiple Ridesharing Service Providers: A Theoretical Proof and an Algorithm for Sustainable Collaborative Ridesharing

by Fu-Shiung Hsieh

Systems 2026, 14(8), 1012; https://doi.org/10.3390/systems14081012 - 17 Aug 2026

Viewed by 179

Abstract

Ridesharing is one type of sustainable transport mode that provides a promising approach to achieving the Sustainable Development Goals (SDGs). Although users can help mitigate CO₂ emissions and fuel consumption by using the services of a single ridesharing service provider, their requests [...] Read more.

Ridesharing is one type of sustainable transport mode that provides a promising approach to achieving the Sustainable Development Goals (SDGs). Although users can help mitigate CO₂ emissions and fuel consumption by using the services of a single ridesharing service provider, their requests may not be accepted because the service provider may not have a sufficient number of drivers to meet their requirements. The existence of multiple ridesharing service providers creates opportunities to satisfy more users’ requirements and enhance the sustainability of ridesharing services through collaboration. In one of our previous studies, we developed several metaheuristic algorithms to show the benefits of collaboration among multiple ridesharing service providers by comparing their performance with that of multiple ridesharing service providers operating independently without collaboration. However, the benefits of collaboration among multiple ridesharing service providers are demonstrated based on numerical results. There is currently no theoretical proof showing that collaboration among multiple ridesharing service providers always performs at least as well as independent operation. In addition, our previous study indicates that the development of a more effective algorithm is key to benefiting from collaboration among multiple ridesharing service providers. The goals of this study are twofold: (1) to develop a theory proving that the performance of multiple ridesharing service providers operating collaboratively is at least as high as that of multiple ridesharing service providers operating independently without collaboration and (2) to develop a more effective algorithm to further improve performance. The theory developed in this paper provides a formal proof of the benefits of collaboration among multiple ridesharing service providers for improving sustainability. The advanced algorithm proposed in this paper outperforms the 12 algorithms developed in our previous study. Full article

(This article belongs to the Special Issue Sustainable Strategies and Organizational Transitions for Green Economy)

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32 pages, 927 KB

Open AccessArticle

Investigating the Antecedents of Green Finance and Their Role in Enhancing Sustainable Performance of Financial Institutions in Saudi Arabia

by Imdadullah Hidayat-ur-Rehman, Mohammad Nurul Alam, Sultan Bader Aljehani and Tawfeeq Mohammed B. AlAnazi

Systems 2026, 14(8), 968; https://doi.org/10.3390/systems14080968 - 10 Aug 2026

Viewed by 363

Abstract

The growing urgency of climate change, environmental sustainability, and financial resilience has led to increased global interest in green finance as a tool for achieving sustainable economic development. However, the existing research lacks a comprehensive empirical framework integrating multiple green finance mechanisms and [...] Read more.

The growing urgency of climate change, environmental sustainability, and financial resilience has led to increased global interest in green finance as a tool for achieving sustainable economic development. However, the existing research lacks a comprehensive empirical framework integrating multiple green finance mechanisms and examining their collective influence on the sustainable performance of financial institutions across environmental, social, and economic dimensions, particularly in emerging economies. This study is grounded in institutional theory, the resource-based view, diffusion of innovation theory, and the cost-efficiency approach. It develops and empirically tests a model in which green bonds, green bank loans, carbon credit financing, sustainable agricultural financing, green microfinance, energy-efficient financing, renewable energy financing, and environmental impact financing determine green finance. Green finance, in turn, enhances the sustainable performance of financial institutions across environmental, social, and economic dimensions in Saudi Arabia. This study employs Partial Least Squares–Structural Equation Modelling to analyse survey data collected from 384 employees in Saudi financial institutions. The results show that all eight green finance mechanisms significantly contribute to green finance, which in turn significantly enhances the sustainable performance of financial institutions. This study makes a significant theoretical contribution by developing and validating measurement items for nine green finance constructs and empirically testing a comprehensive model that explains how green finance mechanisms enhance the sustainable performance of financial institutions. This study provides one of the first comprehensive empirical analyses in Saudi Arabia of green finance’s role in promoting sustainable financial strategies aligned with the United Nations Sustainable Development Goals. The findings offer a strong foundation for future research and provide valuable insights for policymakers, financial regulators, and industry leaders in advancing sustainability-focused financial decision-making and policy reforms. Full article

(This article belongs to the Special Issue Sustainable Strategies and Organizational Transitions for Green Economy)

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30 pages, 2391 KB

Open AccessArticle

Investigating the Evolutionary Dynamics of Green Collaborative Innovation: A Four-Player Evolutionary Game Approach

by Weiwei Song, Zongping Yu, Yuxiang An and Jiayuan Wang

Systems 2026, 14(8), 908; https://doi.org/10.3390/systems14080908 - 1 Aug 2026

Viewed by 268

Abstract

Green collaborative innovation is a complex socio-technical system involving interactions among governments, universities, enterprises, and financial institutions. However, existing studies often examine these actors separately or focus on bilateral relationships, limiting the understanding of how multi-agent strategies jointly evolve toward sustainable innovation. This [...] Read more.

Green collaborative innovation is a complex socio-technical system involving interactions among governments, universities, enterprises, and financial institutions. However, existing studies often examine these actors separately or focus on bilateral relationships, limiting the understanding of how multi-agent strategies jointly evolve toward sustainable innovation. This study develops a four-player evolutionary game model incorporating regional governments, universities, local enterprises, and green financial institutions to investigate the dynamic evolution of green collaborative innovation under bounded rationality. The model integrates fiscal incentives, technology commercialization returns, financial constraints, reputation effects, and social advocacy mechanisms to explore the conditions under which collaborative strategies emerge and stabilize. Theoretical analysis identifies the evolutionary conditions of different strategic combinations, while numerical simulations examine how key factors influence the evolution process. The results reveal that enterprise deep green transformation plays a central role in shaping the evolution of the entire collaborative innovation system. Government subsidies and financial constraints jointly influence enterprises’ transformation decisions, while technology commercialization returns and research support determine universities’ incentives for green R&D. Green financial institutions contribute not only through capital provision, but also through environmental risk assessment and market-based governance. In addition, social advocacy indirectly affects the evolutionary process by influencing reputation-related incentives and strengthening institutional accountability. This study contributes to green innovation and systems science research by providing a multi-agent evolutionary framework that explains the interactions among policy, technology, finance, and institutional factors. The findings suggest that effective green collaborative innovation requires coordinated governance mechanisms that integrate fiscal support, financial regulation, technology transfer, and social supervision. Full article

(This article belongs to the Special Issue Sustainable Strategies and Organizational Transitions for Green Economy)

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27 pages, 1336 KB

Open AccessArticle

Institutionalizing Blue Carbon Markets: Lessons from China and Implications for Developing Countries Through Complex Adaptive Systems

by Zhongguo Xu, Qiuyi Jiang, Sitian Yang and Mengxiang Luo

Systems 2026, 14(7), 803; https://doi.org/10.3390/systems14070803 - 8 Jul 2026

Viewed by 323

Abstract

As a crucial nature-based climate change solution, the realization of blue carbon’s value is primarily impeded by three interrelated obstacles in developing nations: a weak scientific foundation, fragmented market structures across different levels, and the absence of dedicated institutional frameworks. This study focuses [...] Read more.

As a crucial nature-based climate change solution, the realization of blue carbon’s value is primarily impeded by three interrelated obstacles in developing nations: a weak scientific foundation, fragmented market structures across different levels, and the absence of dedicated institutional frameworks. This study focuses on the institutional bottlenecks hindering the marketization of blue carbon in developing countries. By integrating Complex Adaptive Systems (CASs), Coase’s Theory of Property Rights, and the Institutional Analysis and Development (IAD) framework, we constructed a theoretical framework encompassing five dimensions: transaction objects, transaction participants, transaction markets, transaction rules, and benefit distributions. This framework was validated through an empirical analysis of the blue carbon practice in Ningbo, China. The research identified three critical stages in Ningbo’s governance trajectory: initial founding, synergistic stagnation, and iterative upgrading. The core determinant of governance success or failure lies in the capacity to continuously optimize this five-dimensional rule system through a combination of “top-down regulation” and “bottom-up innovation”, thereby reducing transaction costs and generating effective incentives. The findings indicate that successful blue carbon governance depends on establishing a rule system that is both locally adaptive and dynamically adjustable. The analytical framework proposed in this study offers a systematic new perspective for developing countries to remedy institutional gaps in blue carbon governance. By demonstrating China’s locally adapted innovations in resource rights delineation and value realization, it also promotes greater inclusiveness and diversity within the global blue carbon standard system, contributing a governance approach from the Global South that is applicable to countries at varying stages of development. Full article

(This article belongs to the Special Issue Sustainable Strategies and Organizational Transitions for Green Economy)

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26 pages, 639 KB

Open AccessArticle

The Impact of Patient Capital on Green Innovation in Resource-Based Enterprises

by Xiaoyu Ju, Junru Jiang, Huicong Yu and Xinpei Qiao

Systems 2026, 14(7), 784; https://doi.org/10.3390/systems14070784 - 5 Jul 2026

Viewed by 627

Abstract

Against the background of China’s “dual carbon” goals and the continued advancement of the green and low-carbon transformation of resource-based industries, resource-based enterprises urgently need to rely on green innovation to overcome development constraints characterized by high resource dependence, strong environmental pressures, and [...] Read more.

Against the background of China’s “dual carbon” goals and the continued advancement of the green and low-carbon transformation of resource-based industries, resource-based enterprises urgently need to rely on green innovation to overcome development constraints characterized by high resource dependence, strong environmental pressures, and mounting transformation challenges. Patient capital, with its long-term orientation, stable support, and risk-sharing characteristics, can provide sustained financial backing and governance support for green innovation in resource-based enterprises; however, its underlying mechanism remains to be further explored. Drawing on patient capital theory, this study constructs a “capital–ESG–innovation” analytical framework to examine the impact of patient capital on green innovation in resource-based enterprises and its mechanism of action. Using Chinese A-share listed resource-based enterprises from 2014 to 2023 as the research sample, this study measures patient capital from two dimensions, namely stable equity and relational debt, and conducts empirical analysis through panel regression and multiple robustness tests. The results show that patient capital significantly promotes green innovation in resource-based enterprises, with both relational debt and stable equity playing positive roles. Mechanism tests reveal that ESG performance serves as an important mediating channel through which patient capital promotes green innovation. Further analysis indicates that the level of regional marketization strengthens the green innovation effect of patient capital, and this effect is more pronounced in large enterprises, enterprises subject to stronger media supervision, and enterprises whose executives have higher green cognition. This study enriches the literature on the relationship between patient capital and green innovation and provides empirical evidence for cultivating long-term capital and promoting the green and low-carbon transformation of resource-based enterprises. Full article

(This article belongs to the Special Issue Sustainable Strategies and Organizational Transitions for Green Economy)

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26 pages, 4690 KB

Open AccessArticle

Policy Incentive Mechanisms for the Diffusion of Organic Agricultural Production Technologies: Based on a Complex Network Evolutionary Game Model

by Yijun Wang and Pingan Xiang

Systems 2026, 14(6), 675; https://doi.org/10.3390/systems14060675 - 12 Jun 2026

Cited by 1 | Viewed by 385

Abstract

Using a complex network evolutionary game model, this study examines the effects of policy incentives, certification mechanisms, price premiums, production costs, and neighborhood learning on farmers’ adoption of organic farming technologies. It aims to reveal the dynamic mechanisms of organic farming technology diffusion [...] Read more.

Using a complex network evolutionary game model, this study examines the effects of policy incentives, certification mechanisms, price premiums, production costs, and neighborhood learning on farmers’ adoption of organic farming technologies. It aims to reveal the dynamic mechanisms of organic farming technology diffusion under subsidy policies and certification mechanisms. Numerical simulations are conducted to analyze the effects of the subsidy rate and the effectiveness of organic certification on the diffusion level of organic farming technologies. The results show that both subsidy policies and certification mechanisms can promote the diffusion of organic farming technologies; however, the effect of subsidy policies is relatively limited, whereas certification mechanisms play a more significant role. Furthermore, the effects of the subsidy rate and certification effectiveness are influenced by factors such as the proportion of consumers with a preference for organic products, increased production costs, and the organic price premium. Under different levels of bounded rationality and strategy updating rules, the combined “subsidy–certification” policy consistently outperforms single-policy scenarios, with certification mechanisms generally exerting a stronger promotional effect than subsidy policies. In addition, the initial adoption proportion and network size also affect the evolutionary outcomes of the system. A higher initial adoption proportion cannot sustain a higher steady-state diffusion level in the long run, while an increase in network size tends to weaken the effectiveness of policy interventions. Finally, this study proposes policy recommendations, including improving certification and market development mechanisms and strengthening information dissemination and technical service systems, thereby providing practical insights for promoting the diffusion of organic farming technologies. Full article

(This article belongs to the Special Issue Sustainable Strategies and Organizational Transitions for Green Economy)

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26 pages, 4359 KB

Open AccessArticle

Environmental Judicial System Reform and Urban Green Land Use Efficiency in Urban Land Use Systems: Evidence from China

by Yuan Hong, Fang Huang, Jieli Wang and Yanhong Feng

Systems 2026, 14(6), 656; https://doi.org/10.3390/systems14060656 - 7 Jun 2026

Viewed by 499

Abstract

Urban land use systems are shaped by market forces, institutional arrangements, and planning regulations. Based on panel data from 266 Chinese prefecture-level cities from 2006 to 2021, this study treats the staggered establishment of environmental courts as a quasi-natural experiment and applies a [...] Read more.

Urban land use systems are shaped by market forces, institutional arrangements, and planning regulations. Based on panel data from 266 Chinese prefecture-level cities from 2006 to 2021, this study treats the staggered establishment of environmental courts as a quasi-natural experiment and applies a difference-in-differences approach to examine its impact on urban green land use efficiency. The results indicate that the establishment of environmental courts significantly increases urban green land use efficiency. The effects are more pronounced in cities facing greater environmental pressure, exhibiting more carbon-intensive development patterns, and possessing stronger legal foundations. Mechanism tests suggest that the effect operates primarily through strengthened environmental regulation, enhanced green innovation, and adjustments in local energy consumption structures. Full article

(This article belongs to the Special Issue Sustainable Strategies and Organizational Transitions for Green Economy)

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24 pages, 3059 KB

Open AccessArticle

The Systemic Impact of Dynamic Regulations on Green Technology Innovation: An Evolutionary Game Incorporating Consumer Preferences

by Luping Jiang, Xueyang Wang and Jingdong Zhang

Systems 2026, 14(6), 603; https://doi.org/10.3390/systems14060603 - 23 May 2026

Cited by 1 | Viewed by 541

Abstract

Traditional static policy frameworks struggle to effectively respond to dynamic changes in enterprise behavior, thereby undermining the sustainability of policy constraints; therefore, promoting enterprise green technology innovation (GTI) requires adaptive governance, while consumer green preferences play a non-negligible role in this process. This [...] Read more.

Traditional static policy frameworks struggle to effectively respond to dynamic changes in enterprise behavior, thereby undermining the sustainability of policy constraints; therefore, promoting enterprise green technology innovation (GTI) requires adaptive governance, while consumer green preferences play a non-negligible role in this process. This study constructs an evolutionary game model to examine the strategic interactions between governments and enterprises under a dynamic subsidy and penalty mechanism, incorporating consumer green preferences into the analysis. The results show that static subsidy and penalty mechanisms are insufficient to sustain incentives for enterprise GTI; in contrast, dynamic subsidy and penalty mechanisms are more effective in promoting enterprise GTI. Further analysis reveals that the mechanism combining dynamic subsidies and static penalties exhibits superior governance effectiveness, with a “low-subsidy, high-penalty” strategy combination demonstrating a stronger incentive effect in promoting enterprise GTI. Consumer green preferences significantly influence the strategic choices of both governments and enterprises, and their enhancement drives enterprises to engage in GTI. Overall, promoting GTI requires a shift from rigid static policies to adaptive governance, with full considerations on the impact of consumer green preferences on stakeholder behavior. Full article

(This article belongs to the Special Issue Sustainable Strategies and Organizational Transitions for Green Economy)

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21 pages, 686 KB

Open AccessArticle

Beyond Additivity: Digital–Green Synergy in Sustainable Development Policy Systems and Corporate ESG Performance

by Ziyao Yang and Liming Chen

Systems 2026, 14(5), 471; https://doi.org/10.3390/systems14050471 - 27 Apr 2026

Cited by 1 | Viewed by 796

Abstract

Against the backdrop of deepening coordinated policy governance, the systemic synergy between digitalization and green transformation policies and their impact on corporate ESG performance has become a key issue requiring urgent exploration. Unlike existing studies that focus on the effects of individual policies, [...] Read more.

Against the backdrop of deepening coordinated policy governance, the systemic synergy between digitalization and green transformation policies and their impact on corporate ESG performance has become a key issue requiring urgent exploration. Unlike existing studies that focus on the effects of individual policies, this paper adopts a policy system synergy framework to systematically investigate the impact of the coordinated implementation of big data administrative reform and low-carbon city pilot policies on corporate ESG performance. Using a sample of Chinese A-share listed companies from 2010 to 2022, this study applies a multi-period difference-in-differences (DID) method for empirical analysis. The findings show that the systemic synergy between digital and green policies significantly enhances corporate ESG performance, with this promoting effect substantially stronger than that of single pilot policies. Further causal re-identification using a double machine learning (DML) approach verifies the robustness of the baseline conclusion. Heterogeneity analysis indicates that the synergistic effect of digital and green policies is more pronounced in firms with higher levels of digital transformation, greater patient capital, and heavier tax burdens. Mechanism tests reveal that digital–green policy synergy improves ESG performance by enhancing external supervision from government, society, and the market, increasing green government subsidies, and incentivizing firms to engage in green innovation. At the same time, policy system synergy also reduces firms’ perceived uncertainty regarding economic policies and stabilizes their expectations, further enhancing ESG performance. This paper extends the research on the determinants of corporate ESG performance from the perspective of system synergy governance, providing new empirical evidence for understanding the interaction mechanisms between digital governance and green transformation policies. Full article

(This article belongs to the Special Issue Sustainable Strategies and Organizational Transitions for Green Economy)

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45 pages, 2031 KB

Open AccessArticle

Green Transition Decisions of Manufacturing Enterprises: A Systemic–Synergistic Perspective on Decentralized Governance and Green Credit

by Yuyuan Song, Hengjun Huang and Xuewei Gan

Systems 2026, 14(3), 289; https://doi.org/10.3390/systems14030289 - 9 Mar 2026

Viewed by 601

Abstract

Global, industrialization-driven environmental bottlenecks push manufacturing enterprises toward green transitions; yet, the information asymmetry between central and local governments, and between enterprises and banks, hinders this process. Adopting a systemic–synergistic perspective integrating decentralized governance and green credit, in this study, we investigate the [...] Read more.

Global, industrialization-driven environmental bottlenecks push manufacturing enterprises toward green transitions; yet, the information asymmetry between central and local governments, and between enterprises and banks, hinders this process. Adopting a systemic–synergistic perspective integrating decentralized governance and green credit, in this study, we investigate the green transition decisions of manufacturing enterprises. We construct a quadrilateral evolutionary game model involving the central government, local governments, enterprises, and banks, employing MATLAB R2022b to simulate the effects of the key parameters. Subject to the model’s structural assumptions and parameter boundaries, three core findings emerge: first, we find that punitive environmental policies outperform incentive-based instruments in driving enterprise emission reduction; second, we find that the adaptive adjustments made by decentralized governance can effectively facilitate green practices among enterprises; third, within this framework, we find that green credit exerts a non-monotonic impact on enterprises’ green transition behaviors; meanwhile banks’ assessments of enterprises’ environmental risks can indirectly promote enterprise abatement by motivating local governments through signal transmission. This study underscores the systemic synergy of decentralized governance and green credit, offering insights for multistakeholder coordination and policy optimization to advance organizational sustainability transitions for the green economy. Full article

(This article belongs to the Special Issue Sustainable Strategies and Organizational Transitions for Green Economy)

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29 pages, 997 KB

Open AccessArticle

Carbon Reduction Pledges and Renewable Energy Adoption in East Asia’s Early Corporate Energy Transition

by Eun-jung Hyun

Systems 2026, 14(3), 240; https://doi.org/10.3390/systems14030240 - 26 Feb 2026

Cited by 1 | Viewed by 577

Abstract

This paper examines the relationship between corporate carbon-reduction pledges and the subsequent adoption of renewable energy by pledging firms, and whether this relationship depends on the institutional conditions in which they operate. We propose a pressure-capacity model, highlighting two different institutional dimensions, (1) [...] Read more.

This paper examines the relationship between corporate carbon-reduction pledges and the subsequent adoption of renewable energy by pledging firms, and whether this relationship depends on the institutional conditions in which they operate. We propose a pressure-capacity model, highlighting two different institutional dimensions, (1) environmental policy stringency (institutional pressure) and (2) renewable energy infrastructure (institutional capacity), that may shape when firms’ symbolic pledges lead to observable change in their energy procurement behavior. We estimate random-effects logistic regression models with panel data on 552 publicly listed firms in South Korea, China, and Japan from 2002 to 2017. We find that the relationship between carbon-reduction pledges and renewable energy adoption is strengthened by both the stringency of environmental policy and the availability of renewable energy infrastructure. The marginal effects analysis indicates that the pledge effect is close to zero when institutional capacity is low. However, it increases to about 13 percentage points when policy stringency is high and 9 percentage points when renewable supply is high. The country-specific subsample analysis further uncovers that the conditional effect of institutional capacity is particularly pronounced among Japanese companies. The analysis of correlated random effects shows that these patterns remain robust even after controlling for between-firm confounding. Overall, our findings indicate that the extent to which voluntary corporate climate change commitments translate into actual green implementation depends on the regulatory and infrastructural environment in which firms operate. Full article

(This article belongs to the Special Issue Sustainable Strategies and Organizational Transitions for Green Economy)

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39 pages, 2135 KB

Open AccessArticle

Environmental Performance Implications of Intelligent Computing Centre Development: An Empirical Investigation Based on Chinese Cases

by Keyue Chen, Ximu Wang, Zhengwei Ma, Anqi Zhang and Yiran Sun

Systems 2026, 14(2), 165; https://doi.org/10.3390/systems14020165 - 4 Feb 2026

Cited by 2 | Viewed by 840

Abstract

As a critical infrastructure carrier underpinning the cross-regional circulation of data elements within socioeconomic systems, intelligent computing centres (ICCs) confront a pivotal practical challenge amid the transition to a green economy: whether they can synergistically drive digital economy development while facilitating green growth. [...] Read more.

As a critical infrastructure carrier underpinning the cross-regional circulation of data elements within socioeconomic systems, intelligent computing centres (ICCs) confront a pivotal practical challenge amid the transition to a green economy: whether they can synergistically drive digital economy development while facilitating green growth. This question demands empirical verification from the perspective of social science systems practice. Drawing on panel data covering 292 Chinese cities at the prefecture level and above over the period 2010–2023, this study constructs a multidimensional difference-in-differences model with ICC construction as the core explanatory variable. Adopting a systemic analytical framework that integrates urban governance, industrial organization and regional coordination, it explores the impact of ICC deployment on urban environmental performance as well as the operational mechanisms embedded in socioeconomic practices. The findings demonstrate that ICC construction significantly enhances urban environmental performance. This conclusion remains robust after addressing endogeneity concerns and conducting multiple robustness tests. Heterogeneity analysis, grounded in social and regional contextual disparities, indicates that this positive effect is more pronounced in non-resource-based cities, cities with a strong focus on environmental governance and cities located in western China. Mechanism tests further clarify that such effects are achieved through two critical pathways of organizational and systemic transition, fostering green innovation and advancing industrial structure optimization. Moreover, by constructing a Spatial Durbin Model to analyse interregional systemic linkages, this study identifies a significant positive spatial spillover effect of ICC construction. This outcome reflects the cross-regional synergistic value of digital infrastructure within the national green economy system. From the perspective of social science systems practice, this study innovatively reveals the embedded role of digital infrastructure in the green economy system. It provides empirical support for optimizing the spatial layout of ICCs and offers targeted policy references for promoting the coordinated development of the digital economy and ecological environmental protection. Full article

(This article belongs to the Special Issue Sustainable Strategies and Organizational Transitions for Green Economy)

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23 pages, 1280 KB

Open AccessArticle

System Analysis of Environmental Effects: A Case of Sustainable Development in the Russian Economy Based on Digital Engineering

by Farida F. Galimulina, Aleksei I. Shinkevich and Naira V. Barsegyan

Systems 2026, 14(2), 140; https://doi.org/10.3390/systems14020140 - 29 Jan 2026

Viewed by 684

Abstract

The conceptual foundation of this research is the idea of convergence between such development directions of modern production systems as digital design tools and sustainable development. The problem lies in searching for the most effective tools, sources of knowledge, and solutions that contribute [...] Read more.

The conceptual foundation of this research is the idea of convergence between such development directions of modern production systems as digital design tools and sustainable development. The problem lies in searching for the most effective tools, sources of knowledge, and solutions that contribute to improving ecological well-being, including through the adoption of nature-like technologies. The research aim is to substantiate the role of digital engineering in ensuring sustainable development and to identify priority directions for the development of production systems in the context of Russian realities. Research methods: systems analysis, formalization, comparison, statistical analysis, mathematical modeling were employed. Results: the influence of digital engineering on the sustainable development of production systems and the role of nature-like technologies are substantiated; the convergence of digitalization processes and the concept of sustainable development in the form of the «digital engineering–nature-like technologies» dyad is revealed; patterns of development of Russian production systems in the «design and engineering–environmental aspects of sustainable development» plane are identified; and alternative models for managing the technological development of production systems with a focus on ecological well-being are developed. Scientific novelty of the research: based on multidimensional nonlinear analysis, the importance of the convergence of digital engineering and nature-like technologies is proven, and priority directions for the development of production systems that contribute to achieving sustainable development goals under the policy of import substitution and technological leadership implemented in Russia are identified. The formulated theoretical and methodological provisions advance the field of knowledge in industrial economics and sustainable development and are applicable within the planning and programming of activities for production systems at various levels. Full article

(This article belongs to the Special Issue Sustainable Strategies and Organizational Transitions for Green Economy)

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21 pages, 1199 KB

Open AccessArticle

Green Finance and High-Quality Economic Development: Spatial Correlation, Technology Spillover, and Pollution Haven

by Zunrong Zhou and Xiang Li

Systems 2026, 14(1), 72; https://doi.org/10.3390/systems14010072 - 9 Jan 2026

Viewed by 753

Abstract

This study examines how green finance influences high-quality economic development, with a particular focus on its spatial spillover mechanisms. Specifically, we investigate the competing roles of technology spillover and the pollution haven effect. Using provincial panel data from China (2010–2021) and applying a [...] Read more.

This study examines how green finance influences high-quality economic development, with a particular focus on its spatial spillover mechanisms. Specifically, we investigate the competing roles of technology spillover and the pollution haven effect. Using provincial panel data from China (2010–2021) and applying a Spatial Durbin Model (SDM), we deconstruct the total effect of green finance into three distinct components: the local technological progress effect, the positive technology spillover effect, and the negative pollution haven effect. While acknowledging limitations related to the macro-level data granularity and the indirect nature of the mechanism tests, our analysis yields three main findings. First, green finance development shows significant regional disparities. It has progressed most rapidly in the eastern region, remained relatively stable in the central region, and declined in the western region. Second, green finance exerts a strong positive direct effect on local high-quality economic development. This promoting effect becomes even stronger in more developed regions. Third, green finance generates significant negative spatial spillovers on neighboring regions. These are primarily driven by the pollution haven effect, which involves the cross-regional relocation of polluting industries. However, local technological progress partially mitigates these adverse externalities. Overall, our findings reveal the dual nature of the spatial externalities associated with green finance. They also highlight the urgency of coordinated regional environmental governance to prevent “green leakage” and to promote balanced, high-quality economic development. Full article

(This article belongs to the Special Issue Sustainable Strategies and Organizational Transitions for Green Economy)

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28 pages, 1272 KB

Open AccessArticle

How Carbon Emissions Trading Improves Corporate Carbon Performance: Evidence from China with a Moderated Chain Mediation Analysis

by Jiali Feng, Wenxiu Hu, Li Liu and Jiaxing Duan

Systems 2026, 14(1), 62; https://doi.org/10.3390/systems14010062 - 8 Jan 2026

Cited by 4 | Viewed by 1208

Abstract

Against the backdrop of global climate governance and China’s “dual carbon” goals, carbon emissions trading (CET) has become a core policy instrument for promoting low-carbon transformation. However, it remains unclear whether CET policies can effectively improve corporate carbon performance and, more importantly, through [...] Read more.

Against the backdrop of global climate governance and China’s “dual carbon” goals, carbon emissions trading (CET) has become a core policy instrument for promoting low-carbon transformation. However, it remains unclear whether CET policies can effectively improve corporate carbon performance and, more importantly, through which micro-level mechanisms such effects operate within firms. To address these gaps, this study applies a difference-in-differences (DID) approach to examine the impact of CET policy on corporate carbon performance and its transmission pathways. The results show that CET policy significantly enhances corporate carbon performance. Heterogeneity analysis further reveals that this positive effect is more pronounced in regions with lower environmental governance intensity, and that the policy’s effectiveness strengthens over time. Mechanism tests indicate that financing constraints and R&D investment serve as chain mediators: CET policy alleviates financing constraints, stimulates R&D investment, and thereby improves carbon performance. Moreover, the moderating effect analysis shows that executives’ green backgrounds reinforce the policy’s effectiveness by further easing financing constraints and mitigating their negative impact on R&D investment. Overall, these findings deepen the micro-level understanding of market-based environmental regulation and provide policy implications for optimizing CET policy design, improving resource allocation efficiency, and fostering low-carbon transformation and sustainable competitive advantages for enterprises. Full article

(This article belongs to the Special Issue Sustainable Strategies and Organizational Transitions for Green Economy)

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27 pages, 1371 KB

Open AccessArticle

The Thermodynamic Cliff: Pricing the Climate Adaptation Gap in Digital Infrastructure

by Seyedarash Aghili and Mehmet Nurettin Uğural

Systems 2026, 14(1), 34; https://doi.org/10.3390/systems14010034 - 26 Dec 2025

Cited by 1 | Viewed by 1545

Abstract

Conventional climate-risk frameworks, ranging from ESG ratings to Integrated Assessment Models (IAMs), systematically underestimate physical risks by overlooking the non-linear physics that govern infrastructure failure. These top-down models perceive climate change as a manageable operational expense, thereby obscuring the substantial capital requirements necessary [...] Read more.

Conventional climate-risk frameworks, ranging from ESG ratings to Integrated Assessment Models (IAMs), systematically underestimate physical risks by overlooking the non-linear physics that govern infrastructure failure. These top-down models perceive climate change as a manageable operational expense, thereby obscuring the substantial capital requirements necessary to sustain system reliability as global temperatures escalate. This study proposes a physics-first framework to quantify the “Adaptation Gap”—a measurable, unaccounted-for capital liability representing the additional cost needed to upgrade assets to maintain fault tolerance. Within this specific geographic and asset context, it has been determined that restoring fault tolerance for new equipment necessitates a 19.7% (95% CI: 16.5–22.9%) increase in capital expenditure, which increases the Adaptation Gap to 28.7% for typical in-service assets, potentially increasing the true cost for aging assets to between 25% and 30%. Although the quantitative findings are specific to the case study, the methodological framework—assessed as superior to traditional risk metrics—is designed for global application in pricing the Adaptation Gap across all infrastructure sectors with thermal constraints. Our methodology provides a blueprint for establishing a new standard of climate-adjusted valuation, transforming abstract physical risks into a tangible, auditable capital liability. Full article

(This article belongs to the Special Issue Sustainable Strategies and Organizational Transitions for Green Economy)

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22 pages, 1107 KB

Open AccessArticle

ESG Practices and Green Innovation: The Mediating Role of Organizational Pride and the Moderating Effect of Innovation Climate

by Xiaoying Zhang, Yannan Li and Hyunsu Kim

Systems 2025, 13(11), 986; https://doi.org/10.3390/systems13110986 - 4 Nov 2025

Cited by 6 | Viewed by 2280

Abstract

With the growing emphasis on sustainable development, organizations and government agencies are increasingly incorporating environmental, social, and governance (ESG) factors into their strategic agendas. However, previous research has primarily examined ESG performance, stakeholder engagement, and financial outcomes in isolation, overlooking the systemic role [...] Read more.

With the growing emphasis on sustainable development, organizations and government agencies are increasingly incorporating environmental, social, and governance (ESG) factors into their strategic agendas. However, previous research has primarily examined ESG performance, stakeholder engagement, and financial outcomes in isolation, overlooking the systemic role of employee perceptions and psychological responses. To address this shortcoming, this study integrated social identity theory and social exchange theory to explain how ESG practices influence green innovation behavior through organizational pride. Furthermore, drawing on organizational climate theory, we explored the moderating role of innovation climate in this relationship. We used structural equation modeling (SEM) to analyze data from 346 employees across diverse Chinese companies, enabling us to capture the overall structure of the relationship rather than isolated causal relationships. Our results show that all three dimensions of ESG practices significantly enhance organizational pride, which in turn stimulates green innovation, highlighting the indirect, systemic relationship between ESG and innovation outcomes. Organizational climate is an important contextual variable influencing both individual behavior and organizational performance. When organizations have a favorable innovation climate, employees are more likely to translate their pride into concrete innovative behaviors. While the direct impact of ESG (S) and ESG (G) on green innovation has not been confirmed, the mediating role of organizational pride and the moderating role of innovation climate highlight the dynamic interplay between psychological and organizational subsystems. This study conceptualizes ESG practices, organizational pride, and innovation climate as interconnected subsystems within a broader organizational system, providing a systems-based perspective for sustainability research. It advances theoretical understanding of how sustainability initiatives spread through psychological and organizational mechanisms and offers practical insights for policymakers and decision makers seeking to promote long-term green innovation. Full article

(This article belongs to the Special Issue Sustainable Strategies and Organizational Transitions for Green Economy)

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21 pages, 1066 KB

Open AccessArticle

Analysis of the Effects of CSR and Compliance Programs on Organizational Reputation

by Víctor Hugo Arredondo-Méndez, Yaromir Muñoz-Molina, Lorena Para-González and Carlos Mascaraque-Ramírez

Systems 2025, 13(10), 905; https://doi.org/10.3390/systems13100905 - 14 Oct 2025

Cited by 2 | Viewed by 2751

Abstract

The present study undertakes an analytical investigation into the relationships between Corporate Social Responsibility (CSR), Compliance Programs, Reputational Risk Management, and Corporate Image. A survey was conducted among 154 senior professionals in companies across diverse sectors and sizes, using the Partial Least Squares [...] Read more.

The present study undertakes an analytical investigation into the relationships between Corporate Social Responsibility (CSR), Compliance Programs, Reputational Risk Management, and Corporate Image. A survey was conducted among 154 senior professionals in companies across diverse sectors and sizes, using the Partial Least Squares Structural Equation Modeling (PLS-SEM) methodology with the aid of SmartPLS 4.0 software. The findings indicate that CSR exerts a substantial and immediate influence on both the management of reputational risk and the establishment of a robust corporate image. Furthermore, it has been observed that the adoption of Compliance Programs is driven by CSR, which also contributes, albeit to a lesser extent, to the strengthening of the external perception of the company. Conversely, proactive management of reputational risk has been demonstrated to enhance regulatory compliance and positively impact corporate image. The alignment of corporate social responsibility (CSR) with compliance initiatives has been demonstrated to engender sustainable competitive advantages within challenging regulatory contexts. In conclusion, the present paper puts forward the suggestion of conducting longitudinal studies in order to observe the evolution of the relationships under discussion over time. Full article

(This article belongs to the Special Issue Sustainable Strategies and Organizational Transitions for Green Economy)

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20 pages, 1389 KB

Open AccessArticle

Catalyzing the Transition to a Green Economy: A Systemic Analysis of China’s Agricultural Socialized Services and Their Mechanization Pathways

by Xiuyan Su, Xueqi Wang, Yuefei Zhuo, Guan Li and Zhongguo Xu

Systems 2025, 13(9), 778; https://doi.org/10.3390/systems13090778 - 4 Sep 2025

Cited by 1 | Viewed by 1641

Abstract

The green transformation of agricultural systems is crucial for environmental protection and food security, yet smallholder-dominated systems face immense structural barriers. This study investigates whether agricultural socialized services (ASSs)—an emerging institutional innovation—can serve as a catalyst for this transition. Using household survey data [...] Read more.

The green transformation of agricultural systems is crucial for environmental protection and food security, yet smallholder-dominated systems face immense structural barriers. This study investigates whether agricultural socialized services (ASSs)—an emerging institutional innovation—can serve as a catalyst for this transition. Using household survey data from the China Land Economy Survey (CLES), this study examines the direct impact and mediating pathways of ASSs on farmers’ adoption of green production behaviors. We also reveal the heterogeneity effects of household operating scale. The results show the following: (1) Agricultural socialized services positively impact farmers’ adoption of green production behaviors, which can contribute to advancing sustainable agricultural development. (2) ASSs do not simply increase the quantity of machines. Instead, they facilitate a shift from costly asset ownership to efficient mechanization-as-a-service. (3) Furthermore, a heterogeneity analysis reveals that the positive impacts of ASSs are heterogenous at different levels. ASSs more significantly influence farmers’ adoption of green practices for small-scale farms (operating at a size less than 4.8 mu). It provides robust empirical evidence that ASSs can effectively “decouple” green modernization from large-scale farmers to overcome structural barriers. These findings help to provide policy implications for promoting ASSs and sustainable agriculture production. Full article

(This article belongs to the Special Issue Sustainable Strategies and Organizational Transitions for Green Economy)

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26 pages, 7032 KB

Open AccessArticle

An Examination of the Evolution of Green Industry Structure and Sustainable Cooperation Strategies Between China and the Visegrád Group: A Product Space Approach

by Liping Qiu, Qianxue Chen, Xinzhe Zhu, Lihua Yang and Wenbo Gu

Systems 2025, 13(7), 508; https://doi.org/10.3390/systems13070508 - 24 Jun 2025

Viewed by 1463

Abstract

The Visegrád Group (V4), as China’s key economic and trade partner in Central and Eastern Europe, plays a pivotal role in enhancing the effectiveness of sustainable development within the China-Central and Eastern Europe cooperation (China-CEEC) framework through its comprehensive green initiatives. This study [...] Read more.

The Visegrád Group (V4), as China’s key economic and trade partner in Central and Eastern Europe, plays a pivotal role in enhancing the effectiveness of sustainable development within the China-Central and Eastern Europe cooperation (China-CEEC) framework through its comprehensive green initiatives. This study analyzes export data and environmental product classifications from major countries in the CEPII-BACI database, covering the period from 2003 to 2022, to construct a green product space network. The analysis reveals the evolutionary patterns of the green industry and the collaborative transformation mechanisms between China and the V4 countries. The findings indicate the following: (1) The green product space network displays a “core-periphery” structural framework, wherein China has expanded its core product offerings by leveraging technological advancements in the photovoltaic sector, while the V4 countries enhance their resource allocation by systematically phasing out peripheral products. (2) The Green Complexity Index (GCI) suggests that China’s green production capacity has significantly improved, thereby narrowing the technological gap with Poland and Slovakia. (3) According to the Green Competition Index, a strategic complementary space exists between the two parties in the domain of medium- to high-complexity products. This study recommends extending green cooperation to higher value chain segments by establishing a collaborative innovation network for green technologies, developing a dynamic capacity optimization mechanism, and deepening the joint research and development of core products. This article offers a decision-making framework based on production capacity endowments to facilitate multinational collaborative transformations in the green industry. Full article

(This article belongs to the Special Issue Sustainable Strategies and Organizational Transitions for Green Economy)

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28 pages, 371 KB

Open AccessArticle

Political Connection Heterogeneity and Green Technological Innovation: Evidence from Chinese Listed Companies

by Siqi Meng, Xiaoyu Wu and Shuyang Wang

Systems 2025, 13(6), 443; https://doi.org/10.3390/systems13060443 - 6 Jun 2025

Cited by 1 | Viewed by 1967

Abstract

With the continuous development of today’s economy and the growing interest in green technological innovation, this study investigates the impact of executive political connection heterogeneity (EPCH) on corporate green technological innovation (CGTI) in Chinese listed companies. Specifically, it distinguishes between ascribed and achieved [...] Read more.

With the continuous development of today’s economy and the growing interest in green technological innovation, this study investigates the impact of executive political connection heterogeneity (EPCH) on corporate green technological innovation (CGTI) in Chinese listed companies. Specifically, it distinguishes between ascribed and achieved political connections, examining their influence on incremental and radical CGTI. This study employs a quantitative research design, utilizing a sample of Chinese A-share listed companies from 2007 to 2022. Data are sourced from the China Securities Market & Accounting Research (CSMAR) database and the China National Research Data Service (CNRDS) database. The study analysis applies fixed-effect regression models to test the relationships between political connection heterogeneity and innovation outcomes. The findings reveal that ascribed political connections promote incremental innovation, while achieved political connections drive radical innovation. Moreover, strong GEO weakens the effect of ascribed political ties on incremental CGTI while enhancing the effect of achieved political ties on radical CGTI. These results contribute to the understanding of how political ties influence corporate innovation strategies and provide insights into the role of dynamic capabilities in green technological advancements. Full article

(This article belongs to the Special Issue Sustainable Strategies and Organizational Transitions for Green Economy)

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