The Impact of Climate Policy on Vietnamese Firms’ Environmental Reporting: Evidence from Corporate Carbon Trading

Nguyen Tien Dat (), Tran Thi Minh Anh () and Nguyen Thi Hoa Hong
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Nguyen Tien Dat: Faculty of Accounting and Auditing, Banking Academy of Vietnam, 12 Chua Boc, Dong Da District, Ha Noi, Vietnam
Tran Thi Minh Anh: Deloitte Vietnam (Hanoi Office), Vinaconex Tower, 34 Lang Ha, Dong Da District, Ha Noi, Vietnam
Nguyen Thi Hoa Hong: Financial Management - Statistics Analysis Department, Faculty of Business Administration, Foreign Trade University, 91 Chua Lang Street, Dong Da District, Ha Noi, Vietnam

Journal of Environmental Assessment Policy and Management (JEAPM), 2025, vol. 27, issue 03, 1-39

Abstract: This paper investigates how climate policy influences corporate environmental reporting among Vietnamese firms involved in carbon trading. Using the 2016 Plan to implement the Paris Agreement as an exogenous policy shock, we employ a Difference-in-Differences (DiD) approach to identify causal effects. This method is appropriate as it helps mitigate endogeneity concerns by leveraging the parallel trends assumption, which is supported by robustness checks including parallel trend testing, propensity score matching, and placebo tests. The results reveal that climate policy significantly improves the quality of environmental disclosures by carbon trading firms. Moreover, the effect is more pronounced in provinces with stricter environmental regulation and among firms that demonstrate stronger green innovation efforts. These findings contribute to the emerging markets literature on climate policy by highlighting how institutional and innovation-related factors moderate policy effectiveness. From a policy perspective, the study offers evidence-based recommendations to enhance climate governance, particularly through incentivising green innovation and strengthening local regulatory capacity, to improve corporate transparency in environmental reporting.

Keywords: Corporate carbon trading; environmental reporting; climate policy; sustainable development; Vietnam (search for similar items in EconPapers)
JEL-codes: G38 Q01 (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1142/S1464333225500085

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