Could environmental courts reduce carbon intensity? Evidence from cities of China

Abstract

Environmental courts play an important role in pollution control. It is unclear whether environmental courts could help to achieve China's carbon peak and carbon neutrality goals. This study investigates the impact of environmental courts on carbon intensity, using the data of 281 cities of China during 2003–2017. Using the multi-period difference-in-differences (DID) model, this study first evaluates the impact of environmental courts on carbon intensity taking the establishment of environmental courts as a quasi-natural experiment. Then, this study examines the influence mechanisms of environmental court on carbon intensity from the perspective of administrative enforcement, green innovation ability and cooperative effect of pollution control. Finally, this study analyses the heterogeneity test from the perspective of public participation, whether it is a low-carbon pilot city and geographical location. The main results are: (1) Environmental courts could reduce carbon intensity, which is supported by a series of robustness tests. (2) Environmental courts could reduce carbon intensity through improving administrative enforcement of local government and green innovation ability of firms and playing the cooperative effect in pollution control. (3) Heterogeneity test results show that in cities with high public participation, environmental courts could reduce carbon intensity more effectively. Compared with non-low-carbon pilot cities, environmental courts have a bigger role in reducing carbon intensity in low-carbon pilot cities. Compared with the middle cities of China, environmental courts also have a bigger role in reducing carbon intensity in eastern and western cities. This study provides new insights for China to reduce carbon intensity from the perspective of the establishment and implementation of environmental courts, and policy implications of how to effectively play the role of environmental courts in achieving carbon peaks and carbon neutrality goals are finally suggested.