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The Impact of Environmental Management Capabilities on the Economic Value Added of Industrial Enterprises—Empirical Evidence from China

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  • Ke Feng

    (Department of Environmental Science and Engineering, Fudan University, Shanghai 200438, China)

  • Cunkuan Bao

    (Department of Environmental Science and Engineering, Fudan University, Shanghai 200438, China)

Abstract

Under the requirements of carbon peaking and carbon neutrality goals, the value added of Chinese industrial enterprises may face pressure, especially for those with high carbon emissions, where the constraints are more apparent. It is urgent to explore a long-term development path for enterprises to achieve value addition while managing environmental responsibilities effectively. This study conducts an empirical analysis using the unbalanced panel data of 3137 Chinese A-share listed industrial enterprises from 2008 to 2023. It constructs a comprehensive index covering 7 dimensions and 22 indicators to evaluate corporate environmental management capabilities based on three aspects: government policy requirements, corporate management needs, and public social demands. In this study, a dynamic panel differential generalised moment estimation model (dif-GMM) is established to investigate the impact of environmental management capabilities on economic value added. By categorising industrial enterprises into heavily polluting industries and non-heavily polluting industries, the study further investigates the differences in impact. The results show a significant positive correlation between environmental management capabilities and the amount of economic value added, with a stronger correlation for enterprises in heavily polluting industries. The article provides suggestions from government, enterprises, and societal perspectives to promote a virtuous cycle of enhanced environmental management capabilities and value addition, jointly advancing carbon peaking and carbon neutrality goals.

Suggested Citation

  • Ke Feng & Cunkuan Bao, 2024. "The Impact of Environmental Management Capabilities on the Economic Value Added of Industrial Enterprises—Empirical Evidence from China," Sustainability, MDPI, vol. 16(8), pages 1-19, April.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:8:p:3356-:d:1377208
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    References listed on IDEAS

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