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Enterprise environmental performance under China's framework for Central Environmental Protection Inspection: Quasi‐natural experimental evidence

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  • Xiang Li
  • Hailin Lan
  • Ping Zeng

Abstract

In 2016, China launched the Central Environmental Protection Inspection (CEPI) to address environmental pollution. Using a triple‐difference method with data from China's A‐share listed companies between 2010 and 2019, we find that CEPI significantly improves the environmental performance of firms. The improvements are driven by increased environmental awareness, stricter enforcement and greater investment in environmental protection. Fiscal and environmental decentralization positively reinforce the policy's effectiveness. Regions with high public participation, media attention, and visibility experience greater benefits. This research highlights the importance of combining policy initiatives with active public and media engagement to achieve significant environmental improvements.

Suggested Citation

  • Xiang Li & Hailin Lan & Ping Zeng, 2025. "Enterprise environmental performance under China's framework for Central Environmental Protection Inspection: Quasi‐natural experimental evidence," Journal of International Development, John Wiley & Sons, Ltd., vol. 37(1), pages 22-50, January.
    • Handle: RePEc:wly:jintdv:v:37:y:2025:i:1:p:22-50
    DOI: 10.1002/jid.3948
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