Does environmental law enforcement supervision improve corporate carbon reduction performance? Evidence from environmental protection interview

Junyu Pan, Lizhao Du, Haitao Wu () and Xiaoqian Liu

Energy Economics, 2024, vol. 132, issue C

Abstract: In response to the challenge of carbon emissions, countries worldwide have implemented a diverse range of environmental policies. However, the inefficient implementation of these policies remains a remarkable hurdle in the process of carbon governance. Exploiting the environmental protection interview (EPI) initiated in 2014 and 2015 as a quasi-natural experiment and utilizing firm-level data from 2011 to 2018, this study investigates whether the enhanced supervision of local environmental law enforcement by the central government causes changes in corporate carbon reduction performance (CCRP) based on the Staggered DID model. We observe that EPI notably improves CCRP, and this enhancement manifests both immediately and persistently over time. Furthermore, the impact of EPI on CCRP is more pronounced among large-scale enterprises, enterprises with low financing constraints, and those with weak political affiliations. Mechanism analysis indicates that government pollution control efforts, public environmental awareness, and enterprise source control are pivotal factors that strengthen the effectiveness of EPI. This study reveals the positive effects of EPI in achieving carbon reduction goals and underscores the vital role of institutionalized law enforcement supervision mechanisms as a fundamental prerequisite for policy efficacy.

Keywords: Environmental law enforcement supervision; Environmental protection interview; Carbon reduction performance; Carbon neutral (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S014098832400149X
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:eneeco:v:132:y:2024:i:c:s014098832400149x

DOI: 10.1016/j.eneco.2024.107441

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 ().