Does the Responsibility System for Environmental Protection Targets Enhance Corporate High-Quality Development in China?

Zijing Cao, Huiming Zhang, Zixuan Hang, Dequn Zhou and Buhang Jing
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Zijing Cao: School of Management Science and Engineering, Nanjing University of Information Science & Technology, Nanjing 210044, China
Huiming Zhang: School of Management Science and Engineering, Nanjing University of Information Science & Technology, Nanjing 210044, China
Zixuan Hang: School of Applied Meteorology, Nanjing University of Information Science & Technology, Nanjing 210044, China
Dequn Zhou: School of Economics and Management & Research Centre for Soft Energy Sciences, Nanjing University of Aeronautics and Astronautics, Nanjing 211100, China
Buhang Jing: School of Social Work, Columbia University, New York, NY 10027, USA

Energies, 2022, vol. 15, issue 10, 1-18

Abstract: In 2017, China made an ambitious statement of high-quality development (HQD) with which to realize the goals of sustainability proposed by the United Nations. Our paper sheds new light on how the corporate high-quality development is affected by the responsibility system for environmental protection targets using a sample of energy-intensive firms from 2003 to 2018. We calculate the indexes for corporate high-quality development using entropy weighting for the five dimensions: efficiency, innovation, openness, greenness, and social responsibility. Then, we develop a difference-in-differences model to reveal that the responsibility system for environmental protection targets significantly dampens high-quality development of corporations, as the estimated coefficient is −0.0420 with a t -statistic of −2.9384. In contrast with private firms, the high-quality development of state-owned firms shows no significant correlation with environmental policy constraints. The efficiency of capital allocation by corporations mediates the effects of responsibility for environmental protection targets on high-quality development. Our study suggests several policy implications: first, understand the connotation of a high-quality development system, and formulate diversified regulatory policies. Second, the responsibility system for environmental protection targets in China should be implemented steadily within the firm’s abilities. Next, the high-quality development of private firms should generate great attention. Finally, corporate internal governance should be designed to improve high-quality development.

Keywords: environmental regulations; responsibility system for environmental protection targets; energy-intensive firms; corporate high-quality development; difference-in-differences method (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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