The Impact of Environmental Management Capabilities on the Economic Value Added of Industrial Enterprises—Empirical Evidence from China

Ke Feng and Cunkuan Bao ()
Additional contact information
Ke Feng: Department of Environmental Science and Engineering, Fudan University, Shanghai 200438, China
Cunkuan Bao: Department of Environmental Science and Engineering, Fudan University, Shanghai 200438, China

Sustainability, 2024, vol. 16, issue 8, 1-19

Abstract: Under the requirements of carbon peaking and carbon neutrality goals, the value added of Chinese industrial enterprises may face pressure, especially for those with high carbon emissions, where the constraints are more apparent. It is urgent to explore a long-term development path for enterprises to achieve value addition while managing environmental responsibilities effectively. This study conducts an empirical analysis using the unbalanced panel data of 3137 Chinese A-share listed industrial enterprises from 2008 to 2023. It constructs a comprehensive index covering 7 dimensions and 22 indicators to evaluate corporate environmental management capabilities based on three aspects: government policy requirements, corporate management needs, and public social demands. In this study, a dynamic panel differential generalised moment estimation model (dif-GMM) is established to investigate the impact of environmental management capabilities on economic value added. By categorising industrial enterprises into heavily polluting industries and non-heavily polluting industries, the study further investigates the differences in impact. The results show a significant positive correlation between environmental management capabilities and the amount of economic value added, with a stronger correlation for enterprises in heavily polluting industries. The article provides suggestions from government, enterprises, and societal perspectives to promote a virtuous cycle of enhanced environmental management capabilities and value addition, jointly advancing carbon peaking and carbon neutrality goals.

Keywords: environmental management capacity; economic value added; industrial enterprises; empirical research (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/2071-1050/16/8/3356/pdf (application/pdf)
https://www.mdpi.com/2071-1050/16/8/3356/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:16:y:2024:i:8:p:3356-:d:1377208

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().