Seminar (Dept. of Accounting)

Title：Access to green justice and corporate carbon emission: evidence from the establishment of environmental courts

Speaker：Zhong Yuxiang, Assistant Professor, Huazhong University of Science and Technology

Time：10:00-11:30, April 10th, 2024 (Wednesday)

Venue：Room 706, Mingde Business Building

Language：Chinese & English

ABSTRACT:

Global warming has been a growing global concern that forces regulators to find ways to promote green justice and imposes significant environmental litigation cost on firms and in turn, reduce environmental damage. We examine whether the staggered establishment of environmental courts and tribunals (ECTs) in different countries effectively motivate firms to reduce greenhouse gas (GHG) emissions. We find firms exhibit significant reduction in GHG after their countries establish ECTs. Cross-sectional tests reveal that firms reduce their GHG emission by a larger margin when a few country-level and firm-level characteristics predict that the establishment of ECTs represents a stronger shock to the enforcement quality. Overall, our paper suggests that the establishment of ECTs can facilitate public access to green justice, and motive firms to reduce their GHG emission.