Journal
JOURNAL OF BUSINESS ETHICS
Volume 180, Issue 1, Pages 125-143Publisher
SPRINGER
DOI: 10.1007/s10551-021-04886-1
Keywords
Low-carbon city; Corporate carbon reduction; Difference-in-difference
Funding
- National Social Science Foundation of China [19AJY001]
- China Postdoctoral Science Foundation [2020T130393]
- Soft Science Research Program in Shaanxi Province [2021KRM156, 2021KRM086]
- Fundamental Research Funds for the Central Universities [GK202103117, GK202103118]
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The study found a positive impact of low-carbon city construction on corporate carbon reduction performance, especially with state-owned enterprises showing a more significant policy effect. Additionally, environmental quality and political promotion incentives also play important roles in influencing corporate carbon reduction performance.
Enterprises are the market players for carbon reductions and carbon trading, and they are also the significant driving force in a low-carbon economy and society. Using the data of A-share listed companies from 2010 to 2016, this study uses a difference-in-differences (DID) model to examine the effects of the low-carbon city construction on corporate carbon reduction performance. Consistent with our hypotheses, we find that the low-carbon city construction promotes corporate carbon reduction performance. Further analysis indicates that the policy effect is stronger for state-owned enterprises (SOEs) than non-state-owned enterprises (non-SOEs). Moreover, environmental quality can affect the promotion of local government officials, which is more prominent in pilot low-carbon cities, and political promotion incentives significantly improve corporate carbon reduction performance. Furthermore, the highest emission reduction effects come in the fourth year after adopting a carbon reduction policy and are concentrated among the firms in the eastern region. Overall, our findings offer a new point view for a deeper understanding of the improvement of corporate carbon reduction performance, and provide microscopic evidence for the objective evaluation of the environmental effects of China's low-carbon city pilot policies.
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