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Central environmental protection inspection, green technology innovation and carbon intensity of industrial enterprises – Empirical research based on multi-period differences-in-differences model

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  • Lyu, Hengyu
  • Ma, Chunai
  • Arash, Farnoosh

Abstract

As a major institutional innovation of China's environmental governance system, weather the Central Environmental Protection Inspection (CEPI) can reduce carbon intensity is still unclear. This research takes 18,728 company-year sample observations of Chinese industrial A-share listed companies from 2009 to 2020 as the research object (CSMAR and CNRDS databases are used). Multi-period Differences-in-Differences model approach is employed to investigate the mechanisms through which the CEPI affects carbon intensity governance in industrial enterprises, the heterogeneous effects of CEPI are explored at macro, meso and micro levels. CEPI reduces the carbon dioxide emissions of industrial enterprises by 0.028 tons per 10,000 yuan of output value, CEPI achieves carbon intensity governance effect by incentivizing companies to enhance the quantity and the quality of green technological innovation. High level of public environmental oversight and industry competition, as well as nature of state-owned enterprises facilitate the CEPI's role in promoting the reduction of enterprise carbon intensity. The findings provide practical insights for driving green technological innovation among enterprises. Some policy implications are proposed. CEPI should be regulated to strengthen the environmental governance responsibilities of local governments and incentivize industrial enterprises to improve the quantity and quality of green technological innovation and reduce carbon intensity.

Suggested Citation

  • Lyu, Hengyu & Ma, Chunai & Arash, Farnoosh, 2024. "Central environmental protection inspection, green technology innovation and carbon intensity of industrial enterprises – Empirical research based on multi-period differences-in-differences model," Energy, Elsevier, vol. 307(C).
    • Handle: RePEc:eee:energy:v:307:y:2024:i:c:s036054422402423x
    DOI: 10.1016/j.energy.2024.132649
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