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ORIGINAL RESEARCH
Enhancing Corporate Environmental Strategies
through Government Actions: Evidence
from China’s Green Economy Transition
1
School of Economics, Shandong University of Technology, Zibo City, China
2
School of Economics and Management, Southeast University, Nanjing, China
Submission date: 2024-02-14
Final revision date: 2024-03-15
Acceptance date: 2024-04-13
Online publication date: 2024-07-29
Publication date: 2025-01-09
Corresponding author
Pol. J. Environ. Stud. 2025;34(2):1057-1072
KEYWORDS
environmental regulationscorporate sustainabilitygovernment actionsgreen economyenvironmental investmentsChina
TOPICS
ABSTRACT
This study examines how government environmental policies affect company environmental
strategy throughout China’s green economy transformation. Environmental rules and subsidies affect
enterprises’ sustainability policies, according to panel data from Shanghai and Shenzhen A-share listed
corporations from 2010 to 2020. Using a fixed-effects model, environmental penalties and subsidies
both increase enterprises’ environmental protection expenditures, with penalties having a greater effect.
Environmental restrictions also favorably moderate government actions and company green investments.
The study also shows how property rights regulate government action and sustainability efforts.
The report suggests optimizing environmental fines and subsidies to fit local conditions, enhancing
enforcement effectiveness, and fostering alignment with China’s green transition goals across ownership
types based on empirical data. Businesses emphasize green development and proactive compliance
with government laws to increase competitiveness. China’s green transition requires governments and
corporations to balance economic growth with environmental protection. This research provides critical
insights.
CONFLICT OF INTEREST
The authors declare that they have no known competing financial interests or personal relationships that could have appeared to influence the work reported in this paper.
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