Can the opening of high-speed rail help reduce corporate carbon emissions? Evidence from China

This study is the first to examine the relationship between the opening of high-speed rail ( HSR ) and corporate carbon emissions. Using the panel data of Chinese listed industrial firms between 2007 and 2019 and employing a multi-period difference-in-difference (DID) method, we find evidence that the opening of HSR significantly reduces corporate carbon emissions. Corporate green innovation and easing of financial constraints alike act to amplify the carbon reduction effect of HSR . Moreover, the carbon reduction effect of HSR is more pronounced in non-state-owned firms, heavy-polluting firms, firms located in regions with stricter environmental regulations, and those located in central China. Furthermore, the carbon reduction effect of HSR strengthens as HSR speed increases. The key findings remain robust across a series of tests, including parallel trend test, placebo effect test, interference from other policies, propensity score matching-DID (PSM-DID), and local projection-DID (LP-DID). Overall, this study provides promising evidence that HSR construction contributes to lower corporate carbon emissions, and corporate green innovation as well as finance resources also play a critical role in enhancing this environmental benefit.