The impact of environmental policies on corporate environmental protection practices

Abstract

Since the reform and opening up, the Chinese economy has created a development miracle that has attracted worldwide attention. However, behind the rapid economic development is the rapid deterioration of the ecological environment. With the increase in China’s economic size, the development mode of high pollution and high energy consumption is becoming increasingly difficult to sustain, and environmental pollution is receiving more attention from the public and the government. In this context, this article explores the impact of environmental policies on corporate environmental protection practices. By dividing environmental policies into three categories: administrative command control, market incentive, and public participation, this study found that different policy types have different effects on reducing corporate pollution emissions, promoting environmental investment, and green innovation. Although administrative command control policies can restrict corporate emissions, they rely on government law enforcement efforts. Market incentive policies incentivize enterprises to reduce emissions and increase environmental investment through economic means. Public participation policies influence corporate and government behaviour through public opinion pressure. Overall, environmental policies can effectively promote corporate environmental practices. However, it is necessary to combine different policies, strengthen government enterprise cooperation, and enhance public environmental awareness to build a better ecological civilization.