Environmental protection interview and corporate environmental investment: Evidence from China

This study examines the impact of a new government's environmental governance tool, namely, the environmental protection interview system, on corporate environmental investment. Using Chinese A-share companies and a difference-in-differences design, we show that enhanced environmental law enforcement significantly boosts corporate investment in environmental initiatives. Mechanism tests indicate that this effect works in two ways: it raises public awareness of environmental issues and improves green awareness among internal management. Further analysis shows that the policy's positive impact is most pronounced in non-state-owned sectors, manufacturing industries, and companies operating in highly marketized regions. These results highlight the relationship between macro-level environmental policies and corporate investment in green initiatives, and they provide policy implications for strengthening environmental supervision and enforcement and improving the environmental law enforcement system.