Interaction Between Corporate Strategy and Institutions Under a Net‐Zero Vision: Local Government Environmental Attention and Its Impact on Corporate Carbon Performance

Against the backdrop of the net‐zero transition, a pressing question is how local governments' environmental attention can be mobilized to effectively promote corporate carbon abatement. Building on a parsimonious government–corporate–capital incentive framework, this study argues that local environmental attention reshapes corporate abatement incentives through two canonical channels: externally, by strengthening low‐carbon policy stringency, and internally, by increasing firms' willingness to pursue low‐carbon technological innovation, thereby generating context‐dependent patterns of synergy and trade‐offs. To test these propositions, we construct a multi‐source heterogeneous dataset linking Chinese A‐share listed firms, cities, and local government work reports from 2007 to 2022, and employ a dual‐model empirical strategy that combines causal identification with natural language analysis. The results show that greater local environmental attention significantly promotes corporate emission reduction: a one‐standard‐deviation increase in attention is associated with a 0.956% decline in corporate carbon emissions. This finding remains robust across a battery of checks, including alternative variable definitions, endogeneity tests, and modified data constructions. Mechanism analyses further show that the effect operates mainly through stronger external low‐carbon policy intensity and enhanced corporate innovation willingness. Heterogeneity analyses reveal that the abatement effect is more pronounced in non‐resource‐based regions, regions with lower public environmental attention, low‐emission industries, and state‐controlled enterprises. Focusing on attention–instruments–outcomes approach, this paper provides empirical evidence on how local governments can align policy tools with corporate behavior in the net‐zero transition, and offers actionable policy implications for balancing emission reduction and development goals in emerging economies.