Pay for air pollution: Ecological compensation policy and corporate investment

IF 7.5 1区经济学 Q1 BUSINESS, FINANCE International Review of Financial Analysis Pub Date : 2024-11-19 DOI:10.1016/j.irfa.2024.103808

Yang Liu , Jintao Zhang , Le Zhu

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Abstract

This paper investigates the impact of the air ecological compensation (AEC) policy of China on corporate investment in air pollution control. Based on an empirical analysis by the difference-in-differences method, we find that heavily polluting firms significantly increase their air pollution control investment following the AEC policy. Corporate investment is driven by local governments' efforts that the AEC policy makes local governments pay more attention to air pollution control, and raise green subsidies to firms. Besides, the air pollution control investment of state-owned firms is more clearly affected by the AEC policy than others. Higher air pollution risks and shorter policy assessment cycles both make firms more likely to increase investment in air pollution control with the impact of the AEC policy. This paper provides an explanation for the effect mechanism of the AEC policy from a corporate investment perspective that also increases the knowledge of the economic impacts of ecological compensation policies.

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为空气污染买单：生态补偿政策与企业投资

本文研究了中国大气生态补偿（AEC）政策对企业大气污染治理投资的影响。基于差分法的实证分析，我们发现重污染企业在 AEC 政策实施后会显著增加大气污染治理投资。企业投资的驱动力来自于地方政府的努力，即 AEC 政策使地方政府更加重视大气污染治理，并提高了对企业的绿色补贴。此外，与其他企业相比，国有企业的大气污染控制投资受 AEC 政策的影响更为明显。更高的大气污染风险和更短的政策评估周期都使得企业更有可能在 AEC 政策的影响下增加大气污染治理投资。本文从企业投资的角度解释了 AEC 政策的影响机制，同时也增加了人们对生态补偿政策经济影响的认识。

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来源期刊

International Review of Financial Analysis BUSINESS, FINANCE-

CiteScore

10.30

自引率

9.80%

发文量

366

期刊介绍： The International Review of Financial Analysis (IRFA) is an impartial refereed journal designed to serve as a platform for high-quality financial research. It welcomes a diverse range of financial research topics and maintains an unbiased selection process. While not limited to U.S.-centric subjects, IRFA, as its title suggests, is open to valuable research contributions from around the world.