Economics at your fingertips  

Does social trust affect corporate environmental performance in China?

Zhongfei Chen, Fanglin Chen and Mengling Zhou

Energy Economics, 2021, vol. 102, issue C

Abstract: This paper explores whether and how social trust affects corporate environmental performance. Using a unique panel data of Chinese enterprises from 2010 to 2012, we observe that social trust has significant negative effects on corporate pollution. Furthermore, the pollution reduction effect of social trust can be mediated by the increase in institutional quality and economic development and can also be attributed to the reduction of corporate pollution production, consistent with the role of social trust in promoting corporate “pollution prevention” strategies, rather than increasing pollution disposal. We also find that the negative association between social trust and corporate pollution is much stronger for enterprises with private ownership, enterprises with high pollution intensity, and enterprises in eastern coastal areas of China. Our findings emphasize the importance of social trust in environmental protection, especially when formal rules are weak.

Keywords: Social trust; Corporate pollution; Environmental performance; Formal rules; China (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6) Track citations by RSS feed

Downloads: (external link)
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:

DOI: 10.1016/j.eneco.2021.105537

Access Statistics for this article

Energy Economics is currently edited by R. S. J. Tol, Beng Ang, Lance Bachmeier, Perry Sadorsky, Ugur Soytas and J. P. Weyant

More articles in Energy Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

Page updated 2023-09-20
Handle: RePEc:eee:eneeco:v:102:y:2021:i:c:s014098832100414x