Abstract
On the basis of the "Pilot System of the Ecological Damage Compensation" launched in 2015 and a research sample of listed companies in China's heavy pollution industry from 2014 to 2017, this paper uses a difference-in-differences model to empirically evaluate the impact of the damage compensation system on corporate environmental investment, as well as the moderating effect of market degree and firm ownership. The result shows that the implementation of the damage compensation system significantly promotes corporate environmental investment and that the market degree exerts a moderating effect. The effect of supervision remains the same because of firm ownership. This research uses a pilot policy to form a natural experimental group to accurately identify the impact of environmental supervision on corporate environmental investment. The aforementioned conclusions recognize the need for the construction of the ecological damage compensation system, provide a reference for the national government to formulate specific effective environmental policies, stimulate the environmental governance motivation of regional governments, and encourage enterprises to assume environmental responsibilities and thereby achieve green sustainable development.
Highlights
In recent years, the global ecological environment has been seriously damaged
The results show that the implementation of the compensation system can effectively promote environmental investment, and the scale of corporate environmental investment in high-marketization areas is significantly higher, while firm ownership does not show a significant moderating effect
This paper considers the perspective of the main body of policy implementation, local government, and evaluates the effectiveness of environmental protection policy at the micro level, providing evidence for existing environmental regulation research
Summary
The global ecological environment has been seriously damaged. Environmental problems emerge in an endless stream, including poor air quality, soil heavy metals that exceed the standard, water quality deterioration and many other problems. With the increasingly serious ecological damage problem and public awareness of environmental protection, governments pay increasing attention to environmental protection. The focus of environmental pollution control is to increase investment in environmental protection, reduce excessive emissions of pollutants from the source. It is inevitable to adversely affect the environment, such as discharge sewage, consume and use natural resources excessively (Fabian 2015; Jin et al 2019; Zhang et al 2020). According to the principle of "who pollutes, who controls" in “Environmental Protection Law”, enterprises should assume the main responsibility of environmental protection and increase environmental investment
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
