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Does the Responsibility System for Environmental Protection Targets Enhance Corporate High-Quality Development in China?

Author

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  • Zijing Cao

    (School of Management Science and Engineering, Nanjing University of Information Science & Technology, Nanjing 210044, China)

  • Huiming Zhang

    (School of Management Science and Engineering, Nanjing University of Information Science & Technology, Nanjing 210044, China)

  • Zixuan Hang

    (School of Applied Meteorology, Nanjing University of Information Science & Technology, Nanjing 210044, China)

  • Dequn Zhou

    (School of Economics and Management & Research Centre for Soft Energy Sciences, Nanjing University of Aeronautics and Astronautics, Nanjing 211100, China)

  • Buhang Jing

    (School of Social Work, Columbia University, New York, NY 10027, USA)

Abstract

In 2017, China made an ambitious statement of high-quality development (HQD) with which to realize the goals of sustainability proposed by the United Nations. Our paper sheds new light on how the corporate high-quality development is affected by the responsibility system for environmental protection targets using a sample of energy-intensive firms from 2003 to 2018. We calculate the indexes for corporate high-quality development using entropy weighting for the five dimensions: efficiency, innovation, openness, greenness, and social responsibility. Then, we develop a difference-in-differences model to reveal that the responsibility system for environmental protection targets significantly dampens high-quality development of corporations, as the estimated coefficient is −0.0420 with a t -statistic of −2.9384. In contrast with private firms, the high-quality development of state-owned firms shows no significant correlation with environmental policy constraints. The efficiency of capital allocation by corporations mediates the effects of responsibility for environmental protection targets on high-quality development. Our study suggests several policy implications: first, understand the connotation of a high-quality development system, and formulate diversified regulatory policies. Second, the responsibility system for environmental protection targets in China should be implemented steadily within the firm’s abilities. Next, the high-quality development of private firms should generate great attention. Finally, corporate internal governance should be designed to improve high-quality development.

Suggested Citation

  • Zijing Cao & Huiming Zhang & Zixuan Hang & Dequn Zhou & Buhang Jing, 2022. "Does the Responsibility System for Environmental Protection Targets Enhance Corporate High-Quality Development in China?," Energies, MDPI, vol. 15(10), pages 1-18, May.
    • Handle: RePEc:gam:jeners:v:15:y:2022:i:10:p:3650-:d:816989
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    1. Yang Lu & Longji Zeng, 2022. "How Do High-Speed Railways Facilitate High-Quality Urban Development: Evidence from China," Land, MDPI, vol. 11(9), pages 1-15, September.

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