Voluntary environmental regulation and carbon information disclosure: evidence from the green factory certification in China
Document Type
Research-Article
Journal Name
Applied Economics
Keywords
carbon information disclosure, green factory, greenwashing, Voluntary environmental regulation
Abstract
This study examines whether voluntary environmental regulations enhance corporate carbon information disclosure (CID), an underexplored issue in carbon governance. Based on Chinese A-share listed firms from 2010 to 2023, we use green factory certification as a quasi-natural experiment and employ a multi-period difference-in-differences approach. Data were obtained from the CSMAR and CNRDS databases. The final sample consists of 4,966 firms, yielding 40,953 firm-year observations. Results show that certification significantly improves firms’ CID. Mechanism tests reveal three channels: stronger managerial and organizational green awareness, increased investor and media attention, and promoted green investment and innovation. Heterogeneity tests indicate the effect is stronger for firms in non-high-carbon industries, non-key-polluting firms, those in regions with cash incentives and those in areas with weaker low-carbon regulation. Certified firms that receive environmental penalties do not improve CID, verifying the effectiveness of post-certification dynamic monitoring. Furthermore, certification promotes both symbolic and substantive disclosure, reduces greenwashing and cuts real carbon emissions, supporting a ‘talk-and-walk’ governance effect. Certified firms also generate positive spillover effects, motivating industry peers, city peers and downstream supply-chain customers to enhance CID. This study offers causal evidence for voluntary environmental regulation in carbon governance and implications for incentivizing credible carbon disclosure. © 2026 Informa UK Limited, trading as Taylor & Francis Group.