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The impact of government environmental information disclosure on enterprise location choices: Heterogeneity and threshold effect test

This paper examines the impact of GEID on enterprise location choices. Based on the quasi natural experiment of pollution source information disclosure in 2008, this paper uses difference in difference… Click to show full abstract

This paper examines the impact of GEID on enterprise location choices. Based on the quasi natural experiment of pollution source information disclosure in 2008, this paper uses difference in difference model (DID) method. The results show that GEID can attract the location choices of enterprises, which is more attractive to clean enterprises, and has inhibition to polluting enterprises. GEID has a more significant impact on the enterprise location choices in the first and second tier cities and the eastern region, and the attraction of GEID to foreign-funded enterprises is greater. GEID can reduce the location choices by increasing labor cost and public environmental supervision, while GEID can attract enterprises to settle down by improving the business environment and ecological quality. The further threshold test results show that GEID can attract enterprise location as the score of GEID exceeds 23.45, GEID can reduce the location choices of polluting enterprises as the score exceeds 18.29, and GEID will have a higher attraction for clean enterprises as the score exceeds 38.02.

Keywords: location choices; information disclosure; location; enterprise location

Journal Title: Journal of Cleaner Production
Year Published: 2020

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