The illusion of “win–win” solution: Why environmental regulation in china promotes firm performance?

Fu, Tong; Jian, Ze

doi:10.1016/j.strueco.2019.12.007

Cited by 30 publications

(17 citation statements)

References 28 publications

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“…Environmental regulation policies may cause enterprises to face problems such as additional loss of environmental protection equipment and mismatch between production resources and original equipment, namely "compliance cost," which leads to the decline in enterprise production efficiency (Hancevic, 2016). Fu et al (2020) also denied the sustainable effect of environmental regulation on enterprises. The main conflict between the above two views is whether the government can have complete information.…”

Section: Introductionmentioning

confidence: 99%

Can Environmental Information Disclosure Improve Urban Green Economic Efficiency? New Evidence From the Mediating Effects Model

Lin

2022

Front. Environ. Sci.

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Environmental information disclosure is one of the important ways to realize urban sustainable development. This study explores the transmission mechanism between environmental information disclosure and urban green economic efficiency (UGEE) and solves the “black box” system between them. In this method, first, the urban green economic efficiency is calculated using the data envelopment analysis model with undesirable output. Second, the panel data model and the mediating effects model are employed to test the impact of environmental information disclosure on urban green economic efficiency and the possible mediating variables. The main conclusions of this study are as follows: 1) Environmental information disclosure significantly improves urban green economic efficiency, and reducing industrial pollutant emission and improving technological innovation are the significant transmission mechanisms. (2) There is a U-shaped curve relationship between environmental information disclosure and urban green economic efficiency and environmental information disclosure and technological innovation. On the contrary, there is an inverted U-shaped curve relationship between environmental information disclosure and industrial pollutant emission. 3) Environmental information disclosure has a greater sustainability effect in industrial cities. The conclusion shows that environmental information disclosure can improve the efficiency of urban green economy by improving the ability of urban technological innovation and reducing the emission of industrial pollutants. Environmental information disclosure plays a role of “restraining first and then promoting” to sustainable development. This research provides a reference for how to lessen information asymmetry and reduce negative externalities in the formulation of environmental regulatory policies.

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Section: Introductionmentioning

confidence: 99%

Can Environmental Information Disclosure Improve Urban Green Economic Efficiency? New Evidence From the Mediating Effects Model

Lin

2022

Front. Environ. Sci.

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“…ERs have a favorable impact on sustainable growth up to a certain amount, but beyond that point, environmental regulation is detrimental to sustainable growth. Later, it was further suggested that environmental regulation has a facilitating effect on firms' performance and sustainable growth [8]. In addition, ERs have a facilitating and then inhibiting effect on the green economy [9].…”

Section: Introductionmentioning

confidence: 99%

The Impacts of Resource Endowment, and Environmental Regulations on Sustainability—Empirical Evidence Based on Data from Renewable Energy Enterprises

et al. 2022

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In today’s socio-economic context where environmental protection and sustainable development are equally important, how renewable energy enterprises can achieve sustainable development has become a topic of academic interest in recent years. This paper investigates the link between sustainable growth (SG) of renewable energy firms, resource endowment (RE), and environmental regulatory (ERs) issues through a fixed-effects model and a GMM model. Through empirical analysis, it was found that economical environmental regulations have the greatest positive impact on sustainable growth, followed by legal environmental regulations and supervised environmental regulations. Resource endowment is positively related to sustainable growth for non-state-owned renewable energy enterprises, but the negative impact on sustainable growth reflects the effect the of “resource curse”. In addition, resource endowment has a negative moderating effect on environmental regulations and sustainable growth. Thus, the most significant effect is on the relationship between economical environmental regulations and sustainable growth, followed by legal environmental regulations and supervised environmental regulations. Therefore, the flexible and concurrent application of multiple environmental policies is an important way to ensure effective regulations and promote sustainable business growth.

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“…They provided a contrary view, also known as the Porter Hypothesis (PH), that more severe but well-designed ERGs can stimulate firms to innovate. Through cost management [ 5 , 6 ], the competitive advantages [ 7 , 8 ] and the pollution-related rent [ 9 ], firms can be fully or partially compensated for the cost incurred from the compliance with ERG, which helps improve performance. However, many empirical results show the opposite and imply that the PH does not hold.…”

Section: Introductionmentioning

confidence: 99%

Mediation Effect of Corporate Tax Burden and the Relationship between Environmental Regulation and Firm Performance

Dai

Huang

Zhang

et al. 2022

IJERPH

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This paper took the panel data of 1052 heavily-polluting listed companies from both the Shanghai and Shenzhen Stock Exchange from 2010 to 2017 to empirically analyze the impact of environmental regulation (ERG) on firm performance (FP). The article introduces a mediating effect model to test the mediating role of corporate tax burden (ETR) within the relationship between ERG on FP. The results showed that: (1) ERG has exerted a significant enhancement effect on the performance of heavily polluted firms via the ETR reduction mechanism. (2) The mediating effect of ETR depends on the duration of ERG. A significant time lag exists before the mediating effect starts to work, and the magnitude of the mediating effect increases with the time lag from the execution of the ERG. (3) The mediating effect of ETR varies significantly with the nature of corporate property rights. It is significant for the state-owned firms, while for non-state-owned firms, there is no evidence supporting the existence of the mediating effect of ETR despite ERG still having a significant direct-impact on FP. Based on these findings, we discuss the policy suggestion to optimize the impact of environmental regulation policies in terms of incentivizing the green development of polluting firms.

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The illusion of “win–win” solution: Why environmental regulation in china promotes firm performance?

Cited by 30 publications

References 28 publications

Can Environmental Information Disclosure Improve Urban Green Economic Efficiency? New Evidence From the Mediating Effects Model

Can Environmental Information Disclosure Improve Urban Green Economic Efficiency? New Evidence From the Mediating Effects Model

The Impacts of Resource Endowment, and Environmental Regulations on Sustainability—Empirical Evidence Based on Data from Renewable Energy Enterprises

Mediation Effect of Corporate Tax Burden and the Relationship between Environmental Regulation and Firm Performance

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