Air Pollution and Corporate Green Investment:Evidence from Chinese Industrial Companies

Air pollution influences the investment decision-making behavior of micro-enterprises within a region.This study empirically investigates the impact of regional air pollution on corporate green investment using a sample of Chinese A-share industrial listed companies from 2014 to 2022.The findings indicate that worsening air pollution prompts companies to undertake green investments.Environmental pressure from air pollution influences corporate green investment through three channels: local government environmental regulation, media attention, and public environmental supervision.Heterogeneity analysis reveals that the promoting effect of air pollution on corporate green investment is more significant in regions with lower marketization levels, heavily polluted industries, state-owned enterprises, companies with lower government subsidies, and those with lower institutional shareholding.This study uncovers the micro-mechanism through which air pollution impacts economic development, providing theoretical support and empirical evidence for local governments to formulate pollution control policies and achieve low-carbon economic development.