IDEAS home Printed from https://ideas.repec.org/a/wly/sustdv/v32y2024i4p3055-3064.html
   My bibliography  Save this article

Corporate sustainable development strategies: Under the collaborative governance of government and the public

Author

Listed:
  • Lei Du
  • Xing Liu
  • Helin Sun

Abstract

As a problem of multiple failures, effective solutions to environmental problems require overcoming the limitations of single environmental policies and using collaborative governance with multiple regulatory instruments. Based on this, this study examines how collaborative governance between government‐led environmental regulation and public‐participatory environmental regulation can more effectively promote sustainable development strategies for firms. Using data from Chinese listed firms in heavy pollution industries from 2006 to 2019, we constructed a collaborative governance model, and found that (1) government‐led environmental regulation has a significant impact on end‐treatment but no impact on the source treatment of firms; (2) collaborative governance between government‐led and public‐participatory environmental regulation has a significant impact on source treatment but no impact on end‐treatment; (3) mechanism analysis shows that improving long‐term orientation and increasing corporate sustained investments are potential channels of the collaborative governance effect. These findings not only advance our understanding of the policy mix effects of different environmental regulation tools, but also have important policy implications for deepening collaborative governance practices in promoting sustainable development.

Suggested Citation

  • Lei Du & Xing Liu & Helin Sun, 2024. "Corporate sustainable development strategies: Under the collaborative governance of government and the public," Sustainable Development, John Wiley & Sons, Ltd., vol. 32(4), pages 3055-3064, August.
    • Handle: RePEc:wly:sustdv:v:32:y:2024:i:4:p:3055-3064
    DOI: 10.1002/sd.2827
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/sd.2827
    Download Restriction: no
    File URL: https://libkey.io/10.1002/sd.2827?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Pascual Berrone & Andrea Fosfuri & Liliana Gelabert, 2017. "Does Greenwashing Pay Off? Understanding the Relationship Between Environmental Actions and Environmental Legitimacy," Journal of Business Ethics, Springer, vol. 144(2), pages 363-379, August.
    2. Gregory Jackson & Julia Bartosch & Emma Avetisyan & Daniel Kinderman & Jette Steen Knudsen, 2020. "Mandatory Non-financial Disclosure and Its Influence on CSR: An International Comparison," Journal of Business Ethics, Springer, vol. 162(2), pages 323-342, March.
    3. Chen, Zhao & Kahn, Matthew E. & Liu, Yu & Wang, Zhi, 2018. "The consequences of spatially differentiated water pollution regulation in China," Journal of Environmental Economics and Management, Elsevier, vol. 88(C), pages 468-485.
    4. Borghesi, Simone & Cainelli, Giulio & Mazzanti, Massimiliano, 2015. "Linking emission trading to environmental innovation: Evidence from the Italian manufacturing industry," Research Policy, Elsevier, vol. 44(3), pages 669-683.
    5. Popp, David & Hafner, Tamara & Johnstone, Nick, 2011. "Environmental policy vs. public pressure: Innovation and diffusion of alternative bleaching technologies in the pulp industry," Research Policy, Elsevier, vol. 40(9), pages 1253-1268.
    6. Xie, Rong-hui & Yuan, Yi-jun & Huang, Jing-jing, 2017. "Different Types of Environmental Regulations and Heterogeneous Influence on “Green” Productivity: Evidence from China," Ecological Economics, Elsevier, vol. 132(C), pages 104-112.
    7. Li Liu & Lei Du & Xing Liu, 2023. "Lessons from failure: Pollution blacklisting and firm's green innovation," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(1), pages 483-491, February.
    8. Neves, Sónia Almeida & Marques, António Cardoso & Patrício, Margarida, 2020. "Determinants of CO2 emissions in European Union countries: Does environmental regulation reduce environmental pollution?," Economic Analysis and Policy, Elsevier, vol. 68(C), pages 114-125.
    9. Yao, Shouyu & Pan, Yuying & Sensoy, Ahmet & Uddin, Gazi Salah & Cheng, Feiyang, 2021. "Green credit policy and firm performance: What we learn from China," Energy Economics, Elsevier, vol. 101(C).
    10. Tu, Zhengge & Hu, Tianyang & Shen, Renjun, 2019. "Evaluating public participation impact on environmental protection and ecological efficiency in China: Evidence from PITI disclosure," China Economic Review, Elsevier, vol. 55(C), pages 111-123.
    11. Tong Xu, 2022. "The selective centralization in decentralization: China’s environmental vertical management reform with a case study in Hebei province," International Journal of Water Resources Development, Taylor & Francis Journals, vol. 38(4), pages 634-657, July.
    12. Deng, Xiang & Li, Weihao & Ren, Xiaohang, 2023. "More sustainable, more productive: Evidence from ESG ratings and total factor productivity among listed Chinese firms," Finance Research Letters, Elsevier, vol. 51(C).
    13. Ruxi Wang & Frank Wijen & Pursey P.M.A.R. Heugens, 2018. "Government's green grip: Multifaceted state influence on corporate environmental actions in China," Strategic Management Journal, Wiley Blackwell, vol. 39(2), pages 403-428, February.
    14. Ossenbrink, Jan & Finnsson, Sveinbjoern & Bening, Catharina R. & Hoffmann, Volker H., 2019. "Delineating policy mixes: Contrasting top-down and bottom-up approaches to the case of energy-storage policy in California," Research Policy, Elsevier, vol. 48(10).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wenbing Jiang & Xuejun Wang & Lei Du, 2023. "Intergenerational externalities and corporate green innovation," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(4), pages 2212-2221, August.
    2. Zhang, Weike & Luo, Qian & Liu, Shiyuan, 2022. "Is government regulation a push for corporate environmental performance? Evidence from China," Economic Analysis and Policy, Elsevier, vol. 74(C), pages 105-121.
    3. Gao, Yanyan & Zheng, Jianghuai, 2024. "The opposite innovation impacts of air and water pollution regulations: Evidence from the total emissions control policy in China," Journal of Asian Economics, Elsevier, vol. 92(C).
    4. Liu, Yijun & Xu, Rong, 2024. "Money talks: How financial constraint influence corporate environmental behavior prioritization," International Review of Economics & Finance, Elsevier, vol. 91(C), pages 556-578.
    5. Wenbing Jiang & Xuejun Wang & Lei Du, 2024. "Environmental Health Check: How third‐party environmental evaluation project affects corporate environmental responsibility," Sustainable Development, John Wiley & Sons, Ltd., vol. 32(4), pages 3065-3074, August.
    6. Jian Bao & Meiling He, 2022. "Does green credit promote green sustainable development in regional economies?—Empirical evidence from 280 cities in China," PLOS ONE, Public Library of Science, vol. 17(11), pages 1-25, November.
    7. Fang Xu & Meng Tian & Jie Yang & Guohu Xu, 2020. "Does Environmental Inspection Led by the Central Government Improve the Air Quality in China? The Moderating Role of Public Engagement," Sustainability, MDPI, vol. 12(8), pages 1-27, April.
    8. Hu, Hui & Qi, Shaozhou & Chen, Yuanzhi, 2023. "Using green technology for a better tomorrow: How enterprises and government utilize the carbon trading system and incentive policies," China Economic Review, Elsevier, vol. 78(C).
    9. Liu, Duan & Yu, Nizhou & Wan, Hong, 2022. "Does water rights trading affect corporate investment? The role of resource allocation and risk mitigation channels," Economic Modelling, Elsevier, vol. 117(C).
    10. Guo, Shu & Zhang, ZhongXiang, 2023. "Green credit policy and total factor productivity: Evidence from Chinese listed companies," Energy Economics, Elsevier, vol. 128(C).
    11. Zhang, Dongyang, 2023. "Does green finance really inhibit extreme hypocritical ESG risk? A greenwashing perspective exploration," Energy Economics, Elsevier, vol. 121(C).
    12. Ren, Shenggang & Hu, Yucai & Zheng, Jingjing & Wang, Yangjie, 2020. "Emissions trading and firm innovation: Evidence from a natural experiment in China," Technological Forecasting and Social Change, Elsevier, vol. 155(C).
    13. Yanli Ji & Jie Xue & Kaiyang Zhong, 2022. "Does Environmental Regulation Promote Industrial Green Technology Progress? Empirical Evidence from China with a Heterogeneity Analysis," IJERPH, MDPI, vol. 19(1), pages 1-23, January.
    14. Tan, Jing & Liu, Tianyi & Xu, Hao, 2024. "The environmental and economic consequences of environmental centralization: Evidence from China's environmental vertical management reform," China Economic Review, Elsevier, vol. 84(C).
    15. repec:hal:journl:hal-04699553 is not listed on IDEAS
    16. MingCan JI & Xing Zhang, 2024. "Assessing the Impacts and Mechanisms of Green Bond Financing on the Enhancement of Green Management and Technological Innovation in Environmental Conservation Enterprises," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(3), pages 12709-12750, September.
    17. Zhang, Wei & Li, Guoxiang & Guo, Fanyong, 2022. "Does carbon emissions trading promote green technology innovation in China?," Applied Energy, Elsevier, vol. 315(C).
    18. Tian, Jinfang & Sun, Siyang & Cao, Wei & Bu, Di & Xue, Rui, 2024. "Make every dollar count: The impact of green credit regulation on corporate green investment efficiency," Energy Economics, Elsevier, vol. 130(C).
    19. Jia Xu & Jiuchang Wei & Haipeng (Allan) Chen, 2019. "Strategic responses of stigmatized Chinese manufacturing firms to formal and informal environmental regulative pressures through enhanced corporate social responsibility effort," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 26(6), pages 1235-1260, November.
    20. Ying She & Yaobin Liu & Yangu Deng & Lei Jiang, 2020. "Can China’s Government-Oriented Environmental Regulation Reduce Water Pollution? Evidence from Water Pollution Intensive Firms," Sustainability, MDPI, vol. 12(19), pages 1-19, September.
    21. Mengxue Ji & Zhenming Wu & Dandan Zhu, 2023. "Environmental Vertical Management and Enterprises’ Performance: Evidence from Water Pollution Reduction in China," Sustainability, MDPI, vol. 15(19), pages 1-17, September.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:sustdv:v:32:y:2024:i:4:p:3055-3064. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1099-1719 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.