Environmental judicial reform and corporate investment behavior - Based on a quasi-natural experiment of environmental courts.

Ensuring the effectiveness of environmental legislation and regulations necessitates enhancing the professional caliber of the environmental judiciary. Utilizing a multi-period difference-in-differences model, we explore the impact of environmental judicial reforms, exemplified by the establishment of environmental courts, on corporate investment behavior. We find that firms in regions with established environmental courts significantly increase their environmental investments and productive investments, while financial investments remain unaffected. Mechanism testing reveals that the environmental court affects corporate investment by strengthening local government environmental enforcement and promoting public environmental participation. Furthermore, the marginal effect of environmental courts is more pronounced in regions with fewer environmental regulations and lower economic development levels, as well as in state-owned enterprises. Compared to collegiate benches, environmental resources judicial tribunals exert a greater influence on corporate investment behavior. This study adds to the micro-economic analysis of environmental judiciary by providing empirical evidence on how formal institutional frameworks impact corporate investment behavior.

Does vertical supervision promote regional green transformation? Evidence from Central Environmental Protection Inspection.

Vertical supervision is an important institutional arrangement designed to overcome the challenges of environmental governance and promotion of green development in the region. Based on the panel data of 278 cities in China from 2010 to 2018, we use Central Environmental Protection Inspection (CEPI) as an exogenous policy and the multi-period Difference-in-Differences method to test the role of vertical supervision in promoting regional green transformation. Our findings indicate that CEPI, a typical vertical supervision policy, effectively promotes green transformation regionally by reducing local pollution emissions and improving total factor productivity. The analysis of mechanism shows that local governments mainly promote regional green transformation by increasing the investment in pollutant governance, research and development in green technologies, and updating fixed assets. Our study provides a valuable reference for the implementation of vertical supervision policies and effective governance of local governments by the central government.

Regional environmental supervision and corporate environmental investment: from the perspective of ecological damage compensation.

On the basis of the "Pilot System of the Ecological Damage Compensation" launched in 2015 and a research sample of listed companies in China's heavy pollution industry from 2014 to 2017, this paper uses a difference-in-differences model to empirically evaluate the impact of the damage compensation system on corporate environmental investment, as well as the moderating effect of market degree and firm ownership. The result shows that the implementation of the damage compensation system significantly promotes corporate environmental investment and that the market degree exerts a moderating effect. The effect of supervision remains the same because of firm ownership. This research uses a pilot policy to form a natural experimental group to accurately identify the impact of environmental supervision on corporate environmental investment. The aforementioned conclusions recognize the need for the construction of the ecological damage compensation system, provide a reference for the national government to formulate specific effective environmental policies, stimulate the environmental governance motivation of regional governments, and encourage enterprises to assume environmental responsibilities and thereby achieve green sustainable development.

Does the "10-Point Water Plan" reduce the intensity of industrial water pollution? Quasi-experimental evidence from China.

The Action Plan for Water Pollution Prevention and Control (i.e., the "10-Point Water Plan") is a regulation formulated by China to prevent and control water pollution and ensure China's water safety. To test the policy effect of the "10-Point Water Plan", we use data from 269 cities for the period from 2012 to 2017 to examine whether the implementation of the plan can help reduce the intensity of industrial water pollution. The results show that the industrial water pollution intensity in Central and Western China is significantly higher than that in other regions, and the implementation of the "10-Point Water Plan" significantly reduces industrial water pollution intensity in China. We further find that upgrading industrial structures and technological innovation are effective ways to ameliorate the intensity of industrial water pollution. In terms of spatial heterogeneity, the impact of the "10-Point Water Plan" on reducing industrial water pollution is smaller in areas with high environmental regulation intensity than in areas with low environmental regulation intensity. We also find a strong inhibitory effect of environmental regulations on industrial water pollution intensity in areas with low environmental regulation intensity. Our findings support the positive policy effect of the "10-Point Water Plan" and provide significant policy implications for water pollution prevention and control actions in China and other countries.

How does soil pollution risk perception affect farmers' pro-environmental behavior? The role of income level.

Soil pollution is a serious environmental issue in China. As a key subject of agricultural practices, promoting Chinese farmers' Pro-Environmental Behavior (PEB) through increasing their soil pollution risk perception is an important means for soil protection, agricultural transformation and ecological development. In this study, we distinguish four dimensions of soil pollution risk perception: fact perception (FP), loss perception (LP), cause perception (CP) and response behavior ability perception (RBAP). We conceptualize a model that depicts the relationships between the four dimensions of Chinese farmers' soil pollution risk perception and their PEB and the moderating effect of farms' household income level on these relationships. Using a questionnaire survey to collect empirical data, we find: first, the four dimensions of Chinese farmers' soil pollution risk perception have positive effects on their PEB; second, Chinese farmers' household income level positively moderates the relationships between their FP, LP and CP and their PEB but its moderating effect on the relationship between their RBAP and their PEB is not significant. Relevant theory and policy implications for environmental management are discussed in the paper.