Green Investment Orientation Weakens the Association Between Environmental Expenditure Engagement and Pollution-Related Potential Genotoxic Risk

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Abstract
Industrial pollution creates upstream exposure pathways potentially relevant to genetic and public-health outcomes, but whether corporate environmental spending mitigates these risks remains unclear. This study examines whether green investment orientation changes the association between environmental expenditure engagement and pollution-related potential genotoxic risk. The analysis uses 4,396 firm-year observations from 744 listed firms in the United States during 2010-2023 and constructs multidimensional risk indices from hazardous waste and air, water, and chemical pollution indicators. Firm fixed-effects estimates are complemented by alternative outcome measures, reverse-direction tests, and two-step system generalized method of moments estimation. Environmental expenditure engagement is positively associated with subsequent pollution-related risk, consistent with a reactive response to existing environmental pressures. Green investment orientation significantly weakens this association, with stronger evidence in pollution-intensive industries. The findings distinguish reactive environmental spending from preventive capital allocation and show that expenditure is more likely to support pollution mitigation when integrated with longer-term green investment. The indices capture relative firm-level pollution intensity rather than individual exposure or realized genomic damage. The study connects corporate capital allocation with upstream environmental conditions relevant to genetic and public health.

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