Climate change, environmental regulations, and firms' efforts to reduce pollutant emissions

Environmental regulation is an important tool for achieving environmental protection. This study investigated how climate change affects firms' actions to reduce pollutant emissions through environmental regulations. We conducted a pooled OLS regression analysis using data from Chinese industri...

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Main Authors: Zehua Xiao, Cheng Cai, Lumeng Wang, Yigeng Ma
Format: Article
Language:English
Published: Frontiers Media S.A. 2023-03-01
Series:Frontiers in Ecology and Evolution
Subjects:
Online Access:https://www.frontiersin.org/articles/10.3389/fevo.2023.1050642/full
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author Zehua Xiao
Cheng Cai
Cheng Cai
Lumeng Wang
Yigeng Ma
author_facet Zehua Xiao
Cheng Cai
Cheng Cai
Lumeng Wang
Yigeng Ma
author_sort Zehua Xiao
collection DOAJ
description Environmental regulation is an important tool for achieving environmental protection. This study investigated how climate change affects firms' actions to reduce pollutant emissions through environmental regulations. We conducted a pooled OLS regression analysis using data from Chinese industrial firms that were above the designated size from 2006 to 2013. The results showed that firms reduce SO2 emissions in response to climate change, particularly when environmental regulations are more stringent. However, firms prefer to reduce productivity and implement “end-of-pipe” interventions than engage in more green innovation. Our findings highlight how firms deal with climate change under the pressure of environmental regulations and whether ecological considerations align or conflict with economic goals.
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spelling doaj.art-1c81848bd14542c9b48ff2266ef246182023-03-22T05:52:10ZengFrontiers Media S.A.Frontiers in Ecology and Evolution2296-701X2023-03-011110.3389/fevo.2023.10506421050642Climate change, environmental regulations, and firms' efforts to reduce pollutant emissionsZehua Xiao0Cheng Cai1Cheng Cai2Lumeng Wang3Yigeng Ma4School of Business, Hubei University, Wuhan, ChinaSchool of Accountancy, Hubei University of Economics, Wuhan, ChinaCollaborative Innovation Center for Emissions Trading System Co-Constructed by the Province and Ministry, Hubei University of Economics, Wuhan, ChinaSchool of Economics and Management, Huazhong University of Agriculture, Wuhan, ChinaOffice of Integrated Technology, Qingdao Qianwan Container Terminal Co., Ltd., Qingdao, ChinaEnvironmental regulation is an important tool for achieving environmental protection. This study investigated how climate change affects firms' actions to reduce pollutant emissions through environmental regulations. We conducted a pooled OLS regression analysis using data from Chinese industrial firms that were above the designated size from 2006 to 2013. The results showed that firms reduce SO2 emissions in response to climate change, particularly when environmental regulations are more stringent. However, firms prefer to reduce productivity and implement “end-of-pipe” interventions than engage in more green innovation. Our findings highlight how firms deal with climate change under the pressure of environmental regulations and whether ecological considerations align or conflict with economic goals.https://www.frontiersin.org/articles/10.3389/fevo.2023.1050642/fullclimate changeenvironmental regulationpollutant emissionfactor input of productivity processend of pipe interventiongreen innovation
spellingShingle Zehua Xiao
Cheng Cai
Cheng Cai
Lumeng Wang
Yigeng Ma
Climate change, environmental regulations, and firms' efforts to reduce pollutant emissions
Frontiers in Ecology and Evolution
climate change
environmental regulation
pollutant emission
factor input of productivity process
end of pipe intervention
green innovation
title Climate change, environmental regulations, and firms' efforts to reduce pollutant emissions
title_full Climate change, environmental regulations, and firms' efforts to reduce pollutant emissions
title_fullStr Climate change, environmental regulations, and firms' efforts to reduce pollutant emissions
title_full_unstemmed Climate change, environmental regulations, and firms' efforts to reduce pollutant emissions
title_short Climate change, environmental regulations, and firms' efforts to reduce pollutant emissions
title_sort climate change environmental regulations and firms efforts to reduce pollutant emissions
topic climate change
environmental regulation
pollutant emission
factor input of productivity process
end of pipe intervention
green innovation
url https://www.frontiersin.org/articles/10.3389/fevo.2023.1050642/full
work_keys_str_mv AT zehuaxiao climatechangeenvironmentalregulationsandfirmseffortstoreducepollutantemissions
AT chengcai climatechangeenvironmentalregulationsandfirmseffortstoreducepollutantemissions
AT chengcai climatechangeenvironmentalregulationsandfirmseffortstoreducepollutantemissions
AT lumengwang climatechangeenvironmentalregulationsandfirmseffortstoreducepollutantemissions
AT yigengma climatechangeenvironmentalregulationsandfirmseffortstoreducepollutantemissions