Year: 2025
Type: article
Abstract: Nowadays, with the continuous development of corporate ESG ratings, greenwashing has occurred continuously. In order to clarify the influence of the environmental protection tax (EPT) on corporate ESG greenwashing, this paper employs the implementation of the Environmental Protection Tax Law (EPTL) as a quasi-natural experiment, based on the sample data of Shanghai and Shenzhen A-share listed companies during 2015–2022. Using a Difference-in-Differences model to analyze the effect and mechanism of the EPT on corporate ESG greenwashing, we obtain the following findings: (1) The EPT can curb corporate ESG greenwashing, and this effect is more obvious in non-state-owned enterprises, non-labor-intensive enterprises, low-competitive industries, and enterprises located in the east-central region of China. (2) From a mechanistic perspective, reducing information asymmetry and promoting green transformation are two important paths. (3) Higher ESG ratings increase the inhibition of the EPT towards corporate ESG greenwashing.
Source: Sustainability
DOI: 10.3390/su17219559
Authors: Hongwen Jia, Jiayi Liu
Institution: Lanzhou University
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: gold
Estimated APC paid: $2,896
OpenAlex ID: W4415685177