Air pollution, regulations on emission and firms' social responsibility

Author

Jun Myung SONG, Singapore Management UniversityFollow

Publication Type

Report

Version

publishedVersion

Publication Date

6-2023

Abstract

This paper examines whether firms adjust their strategy in emission when air pollution is severe. Considering high PM 2.5 as severe air pollution across 65 countries, I show that firms from countries with severe air pollution have low emission score, suggesting that they put less effort in reducing emission. This is because if they improve emission strategy, firm performance deteriorates. However, such relationship disappears when the government’s environmental stringency is strong, suggesting that government’s intervention is crucial for sustainable environment. This paper concludes with analysis on the factors which can mediate the negative impact of air pollution on firms’ emission strategies.

Keywords

Air Pollution, Emission, Firm Performance, Environmental Stringency

Discipline

Business Law, Public Responsibility, and Ethics | Environmental Sciences | Finance and Financial Management | Strategic Management Policy

Research Areas

Finance

First Page

1

Last Page

26

Publisher

Sim Kee Boon Institute for Financial Economics

City or Country

Singapore

Embargo Period

6-18-2023

Citation

SONG, Jun Myung. Air pollution, regulations on emission and firms' social responsibility. (2023). 1-26.
Available at: https://ink.library.smu.edu.sg/skbi/28

Copyright Owner and License

Singapore Management University

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.