Sustainable green financial system perspective of environmental protection investment and the government's environmental policy or public participation: evidence from Chinese A-share listed companies

Corporate environmental protection investment (EPI) is one of the ways to accelerate green development. This paper develops a theoretical model of EPI focusing on three factors: the government, the public, and the enterprises. It uses data from A-share listed Chinese companies from 2008 to 2014 to a...

Full description

Saved in:
Bibliographic Details
Published in:Economic research - Ekonomska istraživanja 2023, Vol.36 (2)
Main Authors: Zhang, Lisi, Zhang, Ziwei, Bieryt, Karolina, Aftab, Summiya
Format: Article
Language:English
Subjects:
Citizen participation
Companies
Corporate environmental protection investment
Economic theory
Environmental governance
Environmental policy
Environmental protection
Environmental regulations
Financial systems
Governance
Government
Government policy
Green development
Investments
Markets
Participation
Public finance
Public opinion
Public participation
Reforms
Regulation
State intervention
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:Corporate environmental protection investment (EPI) is one of the ways to accelerate green development. This paper develops a theoretical model of EPI focusing on three factors: the government, the public, and the enterprises. It uses data from A-share listed Chinese companies from 2008 to 2014 to analyse the effects of the government environmental policy and public participation on the corporate EPI. Results of this research show that both the environmental regulations issued by the government and the demands put forward by public opinion encourage enterprises to increase investment in environmental protection. Moreover, the government's green policy efforts and public participation result in synergy in governance. Relevant regulations issued by the government improve the efficiency of actual public participation. However, redundant government intervention is not conducive to increasing corporate investment in environmental protection. According to this research, market-oriented reforms can boost the positive impact of government and public efforts on corporate EPI. In order to improve environmental governance and achieve green development, it is necessary to deepen market-oriented reforms and build a coordinated, complementary, and incentive-compatible governance system that deals with issues, demands, rights, and responsibilities of the government, the public, and enterprises.
ISSN:1331-677X
1848-9664
DOI:10.1080/1331677X.2023.2178019