 Why does economic policy uncertainty increase firm-level pollutant emission?Xiao Jun, Wenwei Huang, Yiting Guo, Yuqiang Cao and Meiting Lu Economic Modelling, 2023, vol. 129, issue C Abstract: Previous studies show that economic policy uncertainty (EPU) reduces corporate pollutant emission via suppressing economic activities. In contrast to these findings, this study examines firm-specific pollutant emission capturing various pollutant-containing gases and finds that greater EPU increases corporate pollutant emission in China due to less restrictive environmental regulation or reduced corporate environmental investment. The effect of EPU on pollutant emission is more pronounced for firms located in regions with less intensive environmental regulation. Furthermore, non-state-owned enterprises are more sensitive to economic policy shocks and more likely to increase their pollutant emission when facing high EPU. The findings highlight the importance of understanding corporate strategic responses under EPU that shape their corporate social responsibility behaviors. Keywords: Economic policy uncertainty; Pollutant emission; Corporate social responsibility (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:129:y:2023:i:c:s0264999323003498 DOI: 10.1016/j.econmod.2023.106537 Access Statistics for this article Economic Modelling is currently edited by S. Hall and P. Pauly More articles in Economic Modelling from Elsevier |
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