SCIENCE@home

Impact of environmental labeling certification on firm performance: Empirical evidence from China

Huwei Wen,Chien‐Chiang Lee

Published 2020 in Journal of Cleaner Production

ABSTRACT

Abstract Environmental labels are designed to signal environmental and health information on products throughout their life cycle to consumers and other stakeholders. Investigating A-share listed manufacturing firms in China for the 2004–2018 period, this paper sheds new light on the nexus of environmental labeling certifications and firm performance. We find that there is a grouping difference in firm performance between treatment firms and comparison firms, no matter whether measured by ROA, Tobin’s Q, or TFP. Based on the difference-in-difference (DID) regression, we show that manufacturing firms significantly increase their financial performance and productivity after obtaining environmental labeling certifications. Our research also reveals that the effects of environmental labels on firm performance stem from both the labeling effect and technical factor. The results are robust when we use the micro-level DID model. Further examination shows that the intervention effect is mainly driven by the mechanism of price markup rather than by market share.

PUBLICATION RECORD

CITATION MAP

EXTRACTION MAP

CLAIMS

  • No claims are published for this paper.

CONCEPTS

  • No concepts are published for this paper.

REFERENCES

Showing 1-37 of 37 references · Page 1 of 1

CITED BY

Showing 1-70 of 70 citing papers · Page 1 of 1