IDEAS home Printed from https://ideas.repec.org/p/arx/papers/2411.06110.html
   My bibliography  Save this paper

Can ESG Investment and the Implementation of the New Environmental Protection Law Enhance Public Subjective Well-being?

Author

Listed:
  • Hambur Wang

Abstract

Air pollution has emerged as a serious challenge for China, posing a threat to public health and hindering the progress of sustainable economic development. In response to air pollution and other environmental issues, the Chinese government introduced a new Environmental Protection Law in 2015. This paper investigates the impact of the new Environmental Protection Law's implementation and corporate Environmental, Social, and Governance (ESG) investments on air pollution and public subjective well-being. Using panel data at the macro level, we employ a difference-in-differences (DID) model, with Chinese provinces and municipalities as units of analysis, to examine the combined effects of the new Environmental Protection Law and changes in corporate ESG investment intensity. The study evaluates their impacts on air quality and public subjective well-being. Findings indicate that these policies and investment behaviors significantly improve public subjective well-being by reducing air pollution. Notably, an increase in ESG investment significantly reduces air pollution levels and is positively associated with enhanced well-being. These results underscore the critical role of environmental legislation and corporate social responsibility in improving public quality of life and provide empirical support for promoting sustainable development in China and beyond.

Suggested Citation

  • Hambur Wang, 2024. "Can ESG Investment and the Implementation of the New Environmental Protection Law Enhance Public Subjective Well-being?," Papers 2411.06110, arXiv.org.
    • Handle: RePEc:arx:papers:2411.06110
    as

    Download full text from publisher

    File URL: http://arxiv.org/pdf/2411.06110
    File Function: Latest version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Li, Fan & Zhou, Tao, 2020. "Effects of objective and subjective environmental pollution on well-being in urban China: A structural equation model approach," Social Science & Medicine, Elsevier, vol. 249(C).
    2. Rui-Feng Wang & Wen-Hao Su, 2024. "The Application of Deep Learning in the Whole Potato Production Chain: A Comprehensive Review," Agriculture, MDPI, vol. 14(8), pages 1-30, July.
    3. Borck, Rainald & Schrauth, Philipp, 2021. "Population density and urban air quality," Regional Science and Urban Economics, Elsevier, vol. 86(C).
    4. David Maddison & Katrin Rehdanz & Heinz Welsch (ed.), 2020. "Handbook on Wellbeing, Happiness and the Environment," Books, Edward Elgar Publishing, number 18339.
    5. Levinson, Arik, 2012. "Valuing public goods using happiness data: The case of air quality," Journal of Public Economics, Elsevier, vol. 96(9-10), pages 869-880.
    6. Breslow, Sara Jo & Sojka, Brit & Barnea, Raz & Basurto, Xavier & Carothers, Courtney & Charnley, Susan & Coulthard, Sarah & Dolšak, Nives & Donatuto, Jamie & García-Quijano, Carlos & Hicks, Christina , 2016. "Conceptualizing and operationalizing human wellbeing for ecosystem assessment and management," Environmental Science & Policy, Elsevier, vol. 66(C), pages 250-259.
    7. Ferreira, Susana & Akay, Alpaslan & Brereton, Finbarr & Cuñado, Juncal & Martinsson, Peter & Moro, Mirko & Ningal, Tine F., 2013. "Life satisfaction and air quality in Europe," Ecological Economics, Elsevier, vol. 88(C), pages 1-10.
    8. Guillermo Badía & Vicente Pina & Lourdes Torres, 2019. "Financial Performance of Government Bond Portfolios Based on Environmental, Social and Governance Criteria," Sustainability, MDPI, vol. 11(9), pages 1-13, April.
    9. Menz, Tobias, 2011. "Do people habituate to air pollution? Evidence from international life satisfaction data," Ecological Economics, Elsevier, vol. 71(C), pages 211-219.
    10. Anni Huhtala & Eva Samakovlis, 2007. "Flows of Air Pollution, Ill Health and Welfare," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 37(2), pages 445-463, June.
    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. Arik Levinson, 2020. "Happiness and air pollution," Chapters, in: David Maddison & Katrin Rehdanz & Heinz Welsch (ed.), Handbook on Wellbeing, Happiness and the Environment, chapter 9, pages 164-182, Edward Elgar Publishing.
    2. Welsch, Heinz & Ferreira, Susana, 2014. "Environment, Well-Being, and Experienced Preference," International Review of Environmental and Resource Economics, now publishers, vol. 7(3-4), pages 205-239, December.
    3. Zhang, Xin & Zhang, Xiaobo & Chen, Xi, 2017. "Happiness in the air: How does a dirty sky affect mental health and subjective well-being?," Journal of Environmental Economics and Management, Elsevier, vol. 85(C), pages 81-94.
    4. Wang, Jinxian & Wang, Yangjie & Sun, Cuicui & Chen, Xiaohong, 2021. "Does mandatory air quality information disclosure raise happiness? Evidence from China," Energy Economics, Elsevier, vol. 94(C).
    5. Tiziana Laureti, 2014. "Life satisfaction and environmental conditions in Italy: a pseudo-panel approach," Discussion Papers 2014/192, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    6. Zhang, Xin & Zhang, Xiaobo & Chen, Xi, 2017. "Valuing Air Quality Using Happiness Data: The Case of China," Ecological Economics, Elsevier, vol. 137(C), pages 29-36.
    7. Han, Ahram & Ten, Gi Khan & Wang, Shun, 2023. "Gray skies and blue moms: The effect of air pollution on parental life satisfaction," World Development, Elsevier, vol. 163(C).
    8. Wu, Xianhua & Deng, Huai & Huang, Yuxiang & Guo, Ji, 2022. "Air pollution, migration costs, and urban residents’ welfare: A spatial general equilibrium analysis from China," Structural Change and Economic Dynamics, Elsevier, vol. 63(C), pages 396-409.
    9. Li, Fan & Zhou, Tao, 2020. "Effects of objective and subjective environmental pollution on well-being in urban China: A structural equation model approach," Social Science & Medicine, Elsevier, vol. 249(C).
    10. Meng-Meng Geng & Ling-Yun He, 2021. "Environmental Regulation, Environmental Awareness and Environmental Governance Satisfaction," Sustainability, MDPI, vol. 13(7), pages 1-17, April.
    11. Zhang, Xin & Zhang, Xiaobo & Chen, Xi, 2015. "Happiness in the Air: How Does a Dirty Sky Affect Subjective Well-being?," IZA Discussion Papers 9312, Institute of Labor Economics (IZA).
    12. Yishu Zhou & Jingyi Liu, 2020. "Air Pollution and Mental Health of Older Adults in China," Sustainability, MDPI, vol. 12(3), pages 1-13, January.
    13. Tetsuya Tsurumi & Shunsuke Managi, 2017. "Monetary Valuations of Life Conditions in a Consistent Framework: The Life Satisfaction Approach," Journal of Happiness Studies, Springer, vol. 18(5), pages 1275-1303, October.
    14. Sun, Chuanwang & Yi, Xiangyu & Ma, Tiemeng & Cai, Weiyi & Wang, Wei, 2022. "Evaluating the optimal air pollution reduction rate: Evidence from the transmission mechanism of air pollution effects on public subjective well-being," Energy Policy, Elsevier, vol. 161(C).
    15. Arik Levinson, "undated". "Happiness and Air Pollution," Working Papers gueconwpa~20-23-10, Georgetown University, Department of Economics.
    16. Pan Zhang & Zhiguo Wang, 2019. "PM 2.5 Concentrations and Subjective Well-Being: Longitudinal Evidence from Aggregated Panel Data from Chinese Provinces," IJERPH, MDPI, vol. 16(7), pages 1-13, March.
    17. Arik Levinson, 2013. "Happiness as a Public Policy Tool," Working Papers gueconwpa~13-13-04, Georgetown University, Department of Economics.
    18. Bertram, Christine & Rehdanz, Katrin, 2015. "The role of urban green space for human well-being," Ecological Economics, Elsevier, vol. 120(C), pages 139-152.
    19. Ambrey, Christopher L. & Chan, Andrew Yiu-Chung & Fleming, Christopher M., 2013. "Estimating the cost of air pollution in South East Queensland: An application of the life satisfaction non-market valuation approach," 2013 Conference (57th), February 5-8, 2013, Sydney, Australia 152133, Australian Agricultural and Resource Economics Society.
    20. Qianqian Liu & Guanpeng Dong & Wenzhong Zhang & Jiaming Li, 2022. "The Influence of Air Pollution on Happiness and Willingness to Pay for Clean Air in the Bohai Rim Area of China," IJERPH, MDPI, vol. 19(9), pages 1-13, May.

    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:arx:papers:2411.06110. 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: arXiv administrators (email available below). General contact details of provider: http://arxiv.org/ .

    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.