THE IMPACT OF GOVERNMENT GREEN PROCUREMENT ON CORPORATE ENVIRONMENTAL PERFORMANCE

With the increasing severity of global environmental challenges, government green procurement (GGP), as an effective demand-side environmental governance tool, requires a clearer understanding of its impact mechanism on corporate environmental performance (CEP).Utilizing data from China's A-share listed companies (i.e., companies listed on the Shanghai and Shenzhen Stock Exchanges in mainland China), this study adopts a staggered difference-in-differences approach to comprehensively analyze the effects of GGP on CEP, along with the underlying mechanisms driving these impacts.Our study reveals that GGP significantly enhances CEP.A mechanism analysis reveals that GGP enhances CEP through the improvement of executive green awareness, the promotion of green innovation, and the encouragement of greater investment in environmental protection.A heterogeneity analysis shows that the positive effect of GGP on CEP is more pronounced in non-state-owned enterprises and industries characterized by high market competition.This study significantly contributes to the literature on the environmental impacts of government procurement and offers actionable insights for policymakers to refine GGP policies, thereby accelerating the green transformation of enterprises.