Do Green Supply Chain Management Policies Improve Corporate Environmental Performance? Evidence from China’s Demonstration Program
Year: 2026
Type: article
Abstract: Against the backdrop of rising environmental pressure and increasing reliance on supply-chain-based governance, this study examines the environmental impact of China’s Green Supply Chain Management Demonstration Program. Using a panel of Chinese listed firms from 2012 to 2024, I exploit the inclusion of firms in the government-designated demonstration list as an exogenous policy shock and estimate its effects within a difference-in-differences framework. The results show that participation in the program significantly improves corporate environmental performance. Treated firms are more likely to adopt environmentally friendly practices, including renewable energy use, circular economy initiatives, and energy-saving technologies, and are more likely to receive environmental awards and other forms of positive environmental recognition. Mechanism analyses suggest that these effects operate through increased green patenting activity and enhanced environmental information disclosure quality. Heterogeneity analyses indicate that the effects are stronger for firms with higher supply chain efficiency, more limited access to external resources, and lower pre-existing green innovation, as well as for state-owned enterprises, firms located in eastern China, and those benefiting from greater government green support. Overall, the findings provide causal evidence that supply-chain-oriented environmental policies can effectively enhance corporate environmental performance in emerging economies
Source: Sustainability
DOI: 10.3390/su18073282
Author: Jing Wang
Institution: Southwestern University of Finance and Economics
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: gold
Estimated APC paid: $2,896
OpenAlex ID: W7141543104