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Environmental Compliance and Human Capital: Evidence from Chinese Industrial Firms

Jing Lan () and Alistair Munro ()

No 12-05, GRIPS Discussion Papers from National Graduate Institute for Policy Studies

Abstract: By using a unique cross-sectional dataset of Chinese industrial firms, this paper investigates the external and internal effects of human capital on firms’ environmental performance. The result shows that firms have better environmental compliance because they are ‘pushed’ into making compliance decision by internal driver of human capital and ‘pulled’ to be environmental friendly by external force of social human capital stock. This finding is robust when we take into account of possible endogeneity of human capital. In addition, evidence from this study suggests that the situation of weak implementation of environmental supervision and evasion of environmental monitoring could be reconciled by internal and external effects of human capital.

Pages: 27 pages
Date: 2012-07
New Economics Papers: this item is included in nep-env, nep-hrm, nep-res and nep-tra
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Journal Article: Environmental compliance and human capital: Evidence from Chinese industrial firms (2013) Downloads
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