Effects of China's low carbon pilot city policy on corporate green innovation: Considering the mediating role of public environmental concern

•Confirms Porter Hypothesis effectiveness in fostering corporate green innovation under China's Low Carbon Policy.•Demonstrates significant mediation role of public environmental concern in enhancing green corporate behaviors.•Utilizes a detailed multi-period difference-in-differences analysis to assess policy impacts accurately.•Provides critical insights for policymakers on crafting effective environmental regulations.•Suggests strategic directions for businesses aiming to integrate sustainability in their operations. This manuscript investigates the impact of China's Low Carbon Pilot City Policy on corporate green innovation, focusing on the mediating role of public environmental concern. Through empirical analysis, it aims to re-examine the Porter Hypothesis within this context. The study uses a multi-period difference-in-differences method to analyze the policy's effects and incorporates public environmental concern as a mediator. Findings suggest the policy positively influences corporate green innovation and that public concern plays a crucial mediating role, offering insights for policy formulation and corporate strategy towards sustainable innovation.