Environmental information disclosure and carbon emission efficiency: Evidence from China

Abstract

This study investigates the impact of environmental information disclosure (EID) on total-factor carbon emission efficiency (TFCE) using the SBM model, based on a sample of 761 listed firms in China for a period from 2008 to 2022. Our results conclude that EID affects TFCE following an inverted U-shaped pattern, with an initial positive impact followed by a negative impact as EID increases. This relationship is more pronounced for firms with greater financial constraints, higher number of female managers, and firms located in cities with lower levels of economic development. Further analysis reveals that corporate green technology innovation and corporate social responsibility mediate this relationship, suggesting that EID enhances TFCE through these mechanisms. Our findings shed extra light on this area of research and offer important policy implications, indicating that policymakers should aim for a balanced approach when introducing environmental regulations.