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An Investigation into the Repercussions of Environmental Regulation on the Green Total Factor Productivity within Corporate Entities

Author(s)

Xiaofeng Hu*

Affiliation(s)

School of Economics, Northwest Normal University, Lanzhou, Gansu, China *Corresponding Author.

Abstract

Consequently, environmental regulation possesses significant theoretical and practical significance for improving the green total factor productivity of corporations. Despite the prevailing literature's predominant focus on the macroeconomic impacts of environmental regulations, this study narrows its scope to the microeconomic level, specifically investigating how corporate-level environmental regulations affect green total factor productivity. The analysis utilizes data from publicly listed companies from 2011 to 2022. In this context, the paper employs machine learning algorithms to construct a dictionary of environmental regulations and evaluates the text of these companies' annual reports to formulate an index of corporate environmental regulatory levels. Findings indicate that environmental regulations exert a substantial positive effect on green total factor productivity, a result that withstands a series of robustness tests. This discovery not only contributes to a deeper comprehension of the nexus between micro-level corporate environmental regulation and the enhancement of green production efficiency but also offers valuable insights for enterprises seeking to foster the advancement and refinement of environmental regulatory frameworks.

Keywords

Listed Company; Regulations of Environment; GTFP; Text Analysis

References

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