Low-carbon production and corporate biodiversity concern: Evidence from Chinese manufacturing firms

Cong Nie and Chen Zhang

Finance Research Letters, 2025, vol. 77, issue C

Abstract: Carbon emissions threaten biodiversity, but manufacturing firms often neglect this concern. This study examines the impact of China's Low-Carbon City Pilot on manufacturing firms’ biodiversity concern using a staggered difference-in-differences model. We use financial data from Chinese publicly listed A-share manufacturing firms, with biodiversity concern measured by the frequency of related terms per 10,000 words in annual reports. We find that the policy significantly increases enterprises’ biodiversity attention, particularly for firms with greater financing constraints, and enhances environmental performance and corporate financing. Robustness tests, including heterogeneity-robust estimators, confirm the validity of our findings. The study highlights important implications for policymakers and industry stakeholders, suggesting that integrating biodiversity considerations into policy frameworks and business strategies could enhance both environmental and economic outcomes.

Keywords: Low-carbon city pilot; Biodiversity concern; Manufacturing firms (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1544612325003009
Full text for ScienceDirect subscribers only

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:eee:finlet:v:77:y:2025:i:c:s1544612325003009

DOI: 10.1016/j.frl.2025.107036

Access Statistics for this article

Finance Research Letters is currently edited by R. Gençay

More articles in Finance Research Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().