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Third-party environmental information disclosure and firms' carbon emissions

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  • Ren, Shenggang
  • Wu, Yanping
  • Zhao, Li
  • Du, Lei

Abstract

Third-party environmental information disclosure (TPEID) is an important environmental management tool that promotes public participation and strengthens social supervision, but whether it can affect carbon emission abatement is a question worth exploring. Using China's Pollution Information Transparency Index (PITI) project as a quasi-natural experiment, we provide a comprehensive assessment of the effects of TPEID on firms' carbon emissions via a difference-in-differences (DID) approach. We present unambiguous evidence that TPEID is effective in reducing firms' carbon emissions. The impact channel analysis shows that firms achieve carbon emission abatement mainly by adjusting their energy structures and improving energy efficiency. Further analysis shows that TPEID has a more significant effect on reducing firms' carbon emissions in regions featuring higher levels of public environmental concern, governmental environmental regulation, and internet development. In addition, TPEID significantly improves firms' output, achieving a “win-win” situation for environmental and economic performance.

Suggested Citation

  • Ren, Shenggang & Wu, Yanping & Zhao, Li & Du, Lei, 2024. "Third-party environmental information disclosure and firms' carbon emissions," Energy Economics, Elsevier, vol. 131(C).
    • Handle: RePEc:eee:eneeco:v:131:y:2024:i:c:s0140988324000586
    DOI: 10.1016/j.eneco.2024.107350
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