How does environmental information disclosure affect carbon emissions? Evidence from China

Area of Science:

• Environmental Economics
• Corporate Social Responsibility
• Industrial Ecology

Background:

• Growing global focus on carbon peak and neutrality goals.
• Need for effective strategies to reduce enterprise carbon emissions.
• Limited understanding of environmental information disclosure's impact on corporate emissions in developing economies.

Purpose of the Study:

• To evaluate the impact of environmental information disclosure on enterprise carbon emissions.
• To analyze the moderating effects of environmental regulations and punishments.
• To investigate the mechanisms through which disclosure affects emissions.

Main Methods:

• Difference-in-differences method applied to Chinese industrial firm data (2003-2012).
• Analysis of joint pollution and industrial firm databases.
• Moderating effect and mechanism analysis.

Main Results:

• Environmental information disclosure significantly reduces enterprise carbon emissions.
• Environmental regulations and punishments strengthen the positive impact of disclosure.
• The moderating role of environmental punishment is limited.
• Disclosure improves energy structures and encourages market exit of polluting firms.

Conclusions:

• Environmental information disclosure is an effective tool for carbon emission reduction.
• Environmental regulations play a crucial role in amplifying disclosure's impact.
• Policy interventions should consider both disclosure and regulatory frameworks for optimal outcomes.