To support the carbon neutrality goal, China introduced a green fiscal policy in 2011, with a primary focus on energy conservation and emission reduction. However, there is a notable gap in empirical research regarding the incentive effects of this policy on corporate green innovation. Using a multi-period difference-in-difference model, this study examines whether the green fiscal policy drives green innovation in heavily polluting enterprises. The results indicate that: (1) the green fiscal policy sustainably enhances the green innovation capacity of heavily polluting enterprises in both qua...
