Can environmental information disclosure promote urban carbon emission reduction? Quasi-experimental evidence from China

Environmental information disclosure (DEI) serves as a vital pathway for non-governmental environmental organizations to actively engage in environmental governance. It is also regarded as a form of public participation in environmental regulation, playing a crucial role in curbing carbon emissions and promoting sustainable development in China. This study utilizes the evaluation conducted by the Institute of Public and Environmental Affairs (IPE) and the Natural Resources Defense Council (NRDC) on pollution source information disclosure in Chinese cities as a quasi-natural experiment. By applying the difference-in-differences (DID) approach, the research investigates the impact of DEI on urban carbon emissions. The study's results confirm that DEI is effective in minimizing urban carbon emissions. Mechanism tests indicate that DEI curbs urban carbon emissions by encouraging technological innovation, facilitating industrial structure upgrades, and decreasing energy consumption. Heterogeneity analysis reveals that DEI's influence on lowering urban carbon emissions is more pronounced in central and western regions, cities with high public environmental awareness, non-old industrial base cities, and cities with higher economic development levels. This paper contributes to the literature on environmental governance by providing empirical evidence of the impact of DEI on reducing urban carbon emissions in China. It highlights DEI's effectiveness in enhancing environmental regulation and sustainable urban development through improved transparency and public participation. The study offers valuable insights for policymakers on utilizing DEI as a strategic tool for achieving urban carbon reduction and fostering environmental sustainability, supporting broader climate action goals.