From Dialogue to Action: The Influence of Environmental Protection Interviews on Corporate Environmental Investment

Abstract

Environmental protection interviews offer an innovative method for enforcing environmental law, which is crucial for tackling ecological governance challenges and improving environmental performance. This study investigates the spillover effect of environmental protection interviews on corporate environmental investment. We find that a city’s government being interviewed for environmental issues can urge ‘non-interview’ city enterprises within the same province to enhance environmental investment. The underlying mechanism of this is the peer behavior of non-interview city enterprises. This spillover effect is more pronounced in polluting industries, enterprises with fellowtownsman relations with government officials, and areas with lower economic pressure or older officials. In addition, the spillover effect of environmental protection interviews significantly mitigates pollution in non-interviewed regions, demonstrating a degree of sustainability. This study enriches the literature on evaluating the effectiveness of environmental protection interviews. It offers valuable insights for enhancing the government’s role in green governance, promoting a balance between economic growth and ecological protection.