Environmental justice, corporate green total factor productivity, and pollution control: A quasi-natural experiment based on the establishment of environmental courts

Abstract

This study examines the intrinsic relationship between environmental justice, corporate green total factor productivity , and pollution control, using a sample of Chinese A-share listed companies from 2008 to 2022. Leveraging the establishment of environmental courts as a quasi-natural experiment, the study conducts an in-depth analysis. Empirical results reveal a significant positive correlation between environmental justice and corporate pollution control. Heterogeneity tests indicate that the impact of environmental justice on corporate pollution control varies between heavily polluting firms and lightly polluting firms. Similarly, this impact exhibits heterogeneity between companies receiving standard audit opinions and those receiving non-standard audit opinions. Furthermore, the analysis of moderating effects shows that corporate green total factor productivity plays a moderating role in the relationship between environmental justice and corporate pollution control, with this moderating effect differing between profitable and loss-making firms. This study provides empirical evidence to better understand the complex relationship among environmental justice, corporate green total factor productivity, and pollution control, offering valuable insights for improving the environmental justice system and promoting corporate green development.

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