Does green product certification affect corporate total factor productivity? Evidence from China

Since 2015, China has implemented the Green Product Certification (GPC) program based on green production principles. This study examines the impact of GPC on corporate total factor productivity, with a specific focus on energy conservation, emission reduction, and brand effect. Using the panel data of Chinese listed companies from 2015 to 2022, we assess the effect of GPC on firm-level total factor productivity. The results indicate that participation in GPC significantly enhance total factor productivity, especially for firms with higher R&D investment and government subsidies. Robustness tests confirm these results. This study provides both theoretical and empirical support for the effectiveness of GPC at the firm level, contributing to the literature on the impacts of voluntary environmental regulation. From a policy perspective, we underscore the importance of GPC in environmental governance and recommend that policymakers strengthen GPC standards and procedures, expanding its implementation both nationally and internationally.