Achieving energy justice through corporate carbon disclosure: The effects of voluntary and third-party verification mechanisms

Abstract

Energy justice, characterized by the equitable distribution of resources, sustainable consumption, and the balanced sharing of environmental burdens, is crucial for promoting social equity, fostering sustainable economic growth, and achieving environmental objectives. Previous research on energy justice has primarily focused on the impact of macroeconomic factors. This study investigates variations and trends in energy equity across Chinese provinces, delving into the micro-level dynamics of enterprise carbon disclosure in relation to energy justice. The results underscore the significant impact that carbon information disclosure plays in advancing energy justice, in line with the principles of voluntary disclosure. Voluntary carbon disclosures are notably efficacious in amplifying positive outcomes, with third-party verification acting as a substitutive and significant factor. The comprehensive effect of these two elements can also promote the progress of energy justice. Moreover, carbon information disclosure mitigates information asymmetry and facilitates a more equitable energy conversion process. The cumulative impact of carbon information disclosure and energy justice not only reduces carbon emissions in the year of the study but also substantially reduces emissions in the subsequent year. This research highlights the crucial role of transparent carbon reporting in laying the groundwork for a sustainable and equitable energy future.