What does this research mean for the field?

The establishment of environmental courts improves corporate labour investment efficiency by approximately 6.9%, driven by reduced administrative expenses, lower investment inefficiency, and stimulated green technological innovation. Novelty: ClaimNovelty.INCREMENTAL. Consensus alignment: ConsensusAlignment.NEUTRAL.

What question did this study set out to answer?

To investigate whether the establishment of environmental courts enhances corporate labour investment efficiency and promotes sustainable development.

August 22, 2026Applied Economics Letters

Can environmental judicial justice promote corporate sustainable development? Evidence from labour investment efficiency

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Authors

YWYifeng Wang YCYu Cheng

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Implication

Quasi-experimental study demonstrates environmental courts improve corporate labour investment efficiency by roughly 6.9%, suggesting stronger judicial enforcement enhances sustainable resource...

Key Points

To investigate whether the establishment of environmental courts enhances corporate labour investment efficiency and promotes sustainable development.
Utilized a quasi-natural experimental design based on the staggered establishment of environmental courts in China.
Employed a staggered difference-in-differences (DiD) econometric model to evaluate changes in corporate labour investment efficiency.
Environmental court establishment improved corporate labour investment efficiency by approximately 6.9% of its mean value.
Efficiency gains were significantly stronger among non-labour-intensive firms and companies located in more marketized regions.
Identified mechanisms included reductions in administrative expenses and investment inefficiency, alongside an increase in green technological innovation.

Cite This Study

Wang et al. (2026) studied this question.

synapsesocial.com/papers/6a895ed9ca7ade938187cfa5 https://doi.org/10.1080/13504851.2026.2721558

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Implication

Quasi-experimental study demonstrates environmental courts improve corporate labour investment efficiency by roughly 6.9%, suggesting stronger judicial enforcement enhances sustainable resource...

Can environmental judicial justice promote corporate sustainable development? Evidence from labour investment efficiency

Discussion

Member takes

Implication

Key Points

Cite This Study

Can environmental judicial justice promote corporate sustainable development? Evidence from labour investment efficiency

Discussion

Member takes

Implication

Key Points

Cite This Study

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