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Does enterprise environmental credit promote social harmony? Evidence from city-level social conflicts in China

Author

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  • Lin, Tao
  • Cao, Yang
  • Lai, Aolin

Abstract

A harmonious society can maintain fairness and justice for all, prevent and resolve social conflicts and risks, and create favorable conditions for economic development. Based on panel data from 264 Chinese cities, from 2011 to 2021, this paper examines the impact of enterprise environmental credit on social conflicts using the implementation of an enterprise environmental credit evaluation (EECE) policy as a quasi-natural experiment. The study shows that the EECE policy is effective in reducing social conflicts. It operates through several channels, including reducing pollution emissions, improving the quality of environmental information disclosure, and enhancing enterprises’ economic performance. In addition, in cities characterized by higher levels of economic development, greater credit dependence, stronger environmental regulations, and higher public environmental concern, the EECE policy has a greater impact on reducing social conflicts. Finally, environmental courts enhance the positive impacts of the EECE policy. This paper contributes to the research on environmental credit and offers new insights for controlling environmental pollution and building a harmonious society.

Suggested Citation

  • Lin, Tao & Cao, Yang & Lai, Aolin, 2026. "Does enterprise environmental credit promote social harmony? Evidence from city-level social conflicts in China," Economic Analysis and Policy, Elsevier, vol. 93(C), pages 283-303.
    • Handle: RePEc:eee:ecanpo:v:93:y:2026:i:c:p:283-303
    DOI: 10.1016/j.eap.2026.07.031
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    Keywords

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    JEL classification:

    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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