Environmental fee-to-tax reform policy driving corporate green governance performance: the sustainable path to reducing carbon emission intensity

Against the backdrop of growing resource constraints and ecological degradation, green development has emerged as the core pathway for advancing sustainable economic transformation. Using data from Chinese A-share listed companies on the Shanghai and Shenzhen Stock Exchanges between 2010 and 2023, this study examines the impact and underlying mechanisms of the environmental fee-to-tax reform (EPFT) on corporate green governance performance (GGP). We find that EPFT significantly improves corporate GGP and this positive effect exhibits clear heterogeneity. It is stronger in non-resource-based cities while insignificant in resource-based cities, where stronger local environmental regulation can offset the policy's ineffectiveness. In terms of industry characteristics, the effect is significant in non-heavy-polluting and capital-intensive industries but insignificant in heavy-polluting and non-capital-intensive industries. For managerial characteristics, the effect is concentrated in firms led by executives with environmental education or work experience, particularly CEOs, while it is insignificant for those without such backgrounds. Mechanistically, EPFT enhances GGP by alleviating financing constraints, attracting green investors, and promoting green innovation. Furthermore, EPFT strengthens the spillover effects of GGP on corporate ESG performance and CSR fulfillment, and ultimately reduces carbon emission intensity by elevating GGP levels. These findings provide empirical support and actionable insights for optimizing the environmental tax system and advancing regional sustainable development.