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Anti-corruption and corporate pollution mitigation: Evidence from China

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  • Zhou, Zhifang
  • Han, Shangjie
  • Huang, Zhiying
  • Cheng, Xu

Abstract

Corruption is considered to be a major cause of increased pollution. However, little research has focused on the micro-environmental consequences of political initiatives aimed at curbing corruption, such as anti-corruption campaigns. Based on data from Chinese industrial enterprises, we investigate the impact of anti-corruption on corporate pollution mitigation. Our findings show that China's powerful anti-corruption campaign launched in 2013 has considerably reduced the pollution emission intensity of firms colluding with the government. The mechanism analysis suggests that the anti-corruption campaign has driven firms to mitigate pollution via the hardening effect of environmental regulation, the promotion effect of the market incentive function, and the optimization effect of corporate resource allocation. These findings provide important theoretical and practical value for environmental governance practices in nations like China.

Suggested Citation

  • Zhou, Zhifang & Han, Shangjie & Huang, Zhiying & Cheng, Xu, 2023. "Anti-corruption and corporate pollution mitigation: Evidence from China," Ecological Economics, Elsevier, vol. 208(C).
    • Handle: RePEc:eee:ecolec:v:208:y:2023:i:c:s0921800923000587
    DOI: 10.1016/j.ecolecon.2023.107795
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