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How does state ownership affect pollution control? Evidence from the Chinese iron and steel industry

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  • Zhi Tang
  • Delmonize A. Smith

Abstract

Little is known about how state ownership affects firms' environmental activities. Building on corporate governance literature, we examine the two strategies that Chinese state-owned iron and steel companies may adopt: they can invest in environmental projects, but can also pay an environmental fee and keep polluting. With longitudinal data collected from public Chinese steel firms from 2001-2008, we found that in any given year, the percentage of state ownership does not significantly affect environmental investment; however, a higher percentage of state ownership can decrease environmental fees. As time goes by, firms with a higher state ownership can pay even fewer environmental fees than they used to.

Suggested Citation

  • Zhi Tang & Delmonize A. Smith, 2012. "How does state ownership affect pollution control? Evidence from the Chinese iron and steel industry," International Journal of Business Governance and Ethics, Inderscience Enterprises Ltd, vol. 7(3), pages 173-190.
    • Handle: RePEc:ids:ijbget:v:7:y:2012:i:3:p:173-190
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