Does environmental pollution liability insurance promote environmental performance? Firm-level evidence from quasi-natural experiment in China

Zhu, Dandan; Chen, Ke; Sun, Chuanwang; Lyu, Chaofeng

doi:10.1016/j.eneco.2022.106493

Cited by 26 publications

(10 citation statements)

References 51 publications

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“…The development of the green industry is weak, and businesses have a limited understanding of GI. This leads to a small market share for GI and a lower promotion effect on EQ (Zhu et al, 2023).…”

Section: Influencing Mechanism and Hypothesismentioning

confidence: 99%

Research on the impact of green insurance on regional environmental quality: evidence from China

You,

Wu,

2024

Front. Environ. Sci.

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Green insurance (GI), as an innovative product integrating environmental protection and the financial sector, not only contributes to improving regional environmental quality (EQ) but also enhances corporate environmental risk management and awareness, driving the flourishing development of green finance and the environmental protection industry. Therefore, understanding the relationship between GI and EQ is crucial. This article delves into the mechanisms through which GI influences EQ, proposing a hypothesis that suggests an inverted “U” shape impact. Subsequently, based on panel data from 30 provinces in China spanning from 2000 to 2021, nonlinear regression models and threshold regression models were constructed to test the hypothesis. The research findings indicate: (1) Results from the fixed-effects regression model demonstrate that the impact of GI on China’s EQ follows an inverted “U” shape. (2) Results from the threshold regression model also reveal an inverted “U” shape impact of GI on China’s EQ, with a threshold value of 2.196. (3) Economic level and industrial structure exhibit significant inhibitory effects on EQ improvement. Technological level and environmental regulations demonstrate notable promotional effects. Population size shows no significant impact on EQ improvement. The study identifies a nonlinear effect of GI on EQ improvement, surpassing existing linear effect research, deepening the understanding of its impact on EQ, and contributing to the enhancement of regional EQ.

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Section: Influencing Mechanism and Hypothesismentioning

confidence: 99%

Research on the impact of green insurance on regional environmental quality: evidence from China

You,

Wu,

2024

Front. Environ. Sci.

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“…The consistency of the DID estimation requires the validity of the 'parallel trend assumption', which means that without the GFRIZ shock, the time trend in carbon intensity in the treatment group should parallel that of the control group prior to the policy shock (Zhu et al, 2023;Wen et al, 2021).…”

Section: Endogeneity Considerationmentioning

confidence: 99%

“…Cities, responsible for over 75% of global carbon emission despite occupying just 2% of the world's land area, play a pivotal role in achieving low-carbon and sustainable development (Lombardi et al 2017;Lu et al 2022). Actually, since the mid-1960s, policymakers have sought various environmental regulations to balance the conflict between environmental governance and economic development, including control and command (CAC) regulation and market-based instruments (MBIs) (Zhu et al, 2023). Green finance, as a typical MBI, refers to the integration of environmental considerations into financial decision-making, which has emerged as a promising tool to support and promote low-carbon development in both developed and developing economies (Word Bank, 2017).…”

Section: Introductionmentioning

confidence: 99%

How can green finance promote low-carbon transition of Chinese cities: technological innovation or industrial structure adjustment ?

Wu,

Wen,

nie

et al. 2024

Preprint

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Green finance (GF) has emerged as a promising tool to promote low-carbon development, while knowledge is rather limited regarding the underlying mechanism. This article aims to address this void by constructing a city-level GF index covering seven dimensions and identifying the main pathways through which GF can facilitate the low-carbon development of cities. Using a balanced panel data covering 277 Chinese cities from 2010 to 2020, the results show that: (1) China’s GF development exhibits an overall spatial differentiation of ‘high in the east and low in the west’, while the distribution of carbon intensity (CI) displays an overall spatial differentiation of ‘high in the north and low in the south’; (2) GF significantly decreases CI of cities, which is robust to employing DID strategies and IV estimations; (3) The role of GF on CI varies with the level of CI whereas not with the level of GF; and (4) GF promotes low-carbon transition of cities through mainly on adjusting industrial structure rather than stimulating technological innovation. Despite we also demonstrate green finance enhances green innovation, due to multi-factors, such technology progress it brings may not always translate into a tangible improvement in green productivity. For most developing countries including China, the future policy objective of green finance should focus on enhancing sustainable technological progress. JEL Classification: E44, O33, R11

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“…Schaefer et al (2019) constructed a hierarchical framework to assess water risks in corporate supply chain according to their location using the Monte Carlo Analytic Hierarchy Process. Environmental regulation and firm performance. Researches on the influence of different environmental regulatory policies and tools on pollution prevention and control of firms has been extensively studied, such as subsidy regulation (Jones & Vossler, 2014), trading water pollution discharge permits (Hung & Shaw, 2005), environmental pollution liability insurance (Zhu et al, 2023). Chen et al (2021) examined the mechanism of environmental regulation policies, and found that the fluctuation of external environmental policy has a significant impact on the operation of the firm.…”

Section: Research Status Of Corporate Water Riskmentioning

confidence: 99%

Corporate water risk: A new research hotspot under climate change

Zhu,

Zhang,

Wang

et al. 2023

Sustainable Development

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In the context of intensified climate change and resource scarcity, the impact of water risk on corporate sustainable operation is increasingly prominent; firms must not only be aware of corporate water risks but also take actions in its comprehensive management. For the purpose of integrating literature on corporate water risk and to find research deficiencies and point out future research directions, based on the definition of corporate water risk proposed by the Carbon Disclosure Project, bibliometrics was performed to study the research focus, research hotspots, and research trends in this field by using CITESPACE software. Results showed: (1) researches mainly focus on corporate adaptation under climate change, and corporate environmental management and social responsibility; (2) research hotspots include corporate performance under climate change, supply chain sustainability under water scarcity, environmental regulation and firm performance, environmental strategy and stakeholder management, and so forth; (3) research focuses have gradually changed from the study of corporate behavior under regulatory policies to the physical risk management under climate change, until the comprehensive corporate water risk management. Based on the relationships between water and firms, this paper discussed sources, impact and theories of corporate water risk, and further proposed a new research perspective of value chain. This work not only helps researches understand corporate water risk and further study on it, but also helps enterprises be aware of corporate water risk so as to take actions to deal with it and achieve corporate sustainable development.

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Does environmental pollution liability insurance promote environmental performance? Firm-level evidence from quasi-natural experiment in China

Cited by 26 publications

References 51 publications

Research on the impact of green insurance on regional environmental quality: evidence from China

Research on the impact of green insurance on regional environmental quality: evidence from China

How can green finance promote low-carbon transition of Chinese cities: technological innovation or industrial structure adjustment ?

Corporate water risk: A new research hotspot under climate change

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