AUTHOR=Xiao Zehua , Cai Cheng , Wang Lumeng , Ma Yigeng 

TITLE=Climate change, environmental regulations, and firms' efforts to reduce pollutant emissions

JOURNAL=Frontiers in Ecology and Evolution

VOLUME=Volume 11 - 2023

YEAR=2023

URL=https://www.frontiersin.org/journals/ecology-and-evolution/articles/10.3389/fevo.2023.1050642

DOI=10.3389/fevo.2023.1050642

ISSN=2296-701X

ABSTRACT=Introduction: This study investigates how climate change inspires firms to abate pollutant emissions. China is the worlds’ largest developing country. Political-based environmental regulation is an important approach to realizing environmental protection. Methods: We use data of Chinese industrial firms above a designated size from 2006 to 2013. Results: We find that climate change reduces firms’ SO2 emissions, and abatement is more evident when environmental regulation is stronger. However, firms prefer to reduce productivity and implement “end-of-pipe” intervention than engage in more green innovation. Discussion: Overall, our findings highlight how firms deal with climate change under the pressure of environmental regulation and whether ecology and economics are aligned or conflict.