Patents are important carriers of technical knowledge. However, whether and how host countries can improve firms’ environmental performance through the cross-border green patents they obtained has not received the attention it deserves. From an international perspective, this study examines the impact and mechanisms of cross-border green patents on environmental performance in host-country firms by using data of Chinese listed firms. Our empirical results suggest that cross-border green patents have a positive impact on the environmental performance of host-country firms. Mechanism testing results indicate that this relationship is primarily mediated through promoting green technological progress, enhancing executives' green cognition, and importing green intermediate goods. Meanwhile, the positive effect is more pronounced among firms in technology-intensive industries, firms in regions with high environmental governance priorities, and firms in maturity stages. This study contributes to understanding the role of cross-border green patents in the environmental governance of host-country firms. This provides a valuable reference for developing countries like China to adopt an economic growth model that balances economic and environmental benefits.
Yao et al. (Sun,) studied this question.