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How Does Carbon Constraint Policy Uncertainty Affect the Corporate Green Governance? Evidence from Chinese Industrial Enterprises

Author

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  • Qifeng Wei

    (Business School, Chengdu University of Technology, Chengdu 610059, China
    Institute for Industrial Economics, Sichuan Academy of Social Sciences, Chengdu 610071, China
    Institute of Western China Economic Research, Southwestern University of Finance and Economics, Chengdu 611130, China)

  • Zihao Wang

    (Business School, Chengdu University of Technology, Chengdu 610059, China)

Abstract

Macro policy regulation centered on carbon emissions profoundly influences the path for enterprises to achieve low-carbon transformation. Using panel data from Chinese A-share listed companies over the period from 2014 to 2023, this study adopts the methods of panel regression, moderating effect and mediating effect. The empirical research finds that: (1) Policy uncertainty from carbon emission constraints significantly incentivizes industrial enterprises to adopt greener governance strategies. (2) The mechanism analysis indicates that the uncertainty posed by carbon emission constraints influences corporate green governance by enhancing regional green finance development, intensifying corporate financing constraints, and improving the quality of corporate green innovation. (3) Enterprises with substantial environmental protection investments and stronger reputations are less susceptible to changes in their green governance strategies triggered by carbon emission constraint policies. (4) The effects of carbon constraint policy uncertainty on green governance strategies of industrial enterprises exhibit heterogeneity. Specifically, these effects are relatively weaker for non-heavy-polluting enterprises located in carbon emission trading pilot cities, enterprises with higher information disclosure quality, and enterprises whose senior executives have backgrounds in environmental protection. Ultimately, to promote the sustainable development of industrial enterprises, this study provides three recommendations.

Suggested Citation

  • Qifeng Wei & Zihao Wang, 2025. "How Does Carbon Constraint Policy Uncertainty Affect the Corporate Green Governance? Evidence from Chinese Industrial Enterprises," Sustainability, MDPI, vol. 17(17), pages 1-33, September.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:17:p:7938-:d:1741406
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