China Policy Journal Volume 1, Number 1, Fall 2018 | Page 136

Environmental Performance Rating and Disclosure: An Empirical Investigation in Jiangsu, China
Chemicals 72.18*** −27.88 160.67*** 100.26***
(24.02) (60.28) (36.49) (31.95)
Medical 279.24 79.76 686.83* 573.04*
(194.64) (111.22) (366.71) (346.37)
Fiber, rubber and plastic 29.2 −59.85* 40.74 −22.71
(28.77) (32.48) (74.32) (17.33)
Smelting 18.62 −30.11* 46.8 −20.37
(23.73) (17.80) (34.14) (29.70)
Machinery manufacture 7.39 −60.81 −24.94 −61.55
(12.60) (50.83) (19.93) (41.75)
Utility 21.58** −4.32 0.34 −49.59
(9.66) (68.11) (47.24) (71.06)
Transportation 147.44* 93.82*** 442.96*** 380.16***
(86.75) (11.30) (95.04) (57.75)
Others 46.08*** −11.19 36.24 −16.45
(17.25) (47.13) (71.49) (39.33)
Time trend 3.5 5.87 2.79 0.95
(8.26) (7.28) (18.68) (17.70)
Constant −6.66 134.60*** 65.27 126.36
(70.41) (46.86) (122.78) (99.61)
No. of obs (clusters) 967 (3) 914 (4) 659 (4) 664 (4)
within R 2 0.53 0.01 0.14 0.96
between R 2 0.12 0.77 0.98 0.95
overall R 2 0.24 0.57 0.96 0.96
Breusch and Pagan Lagrangian Multiplier test for random effects
Test statistics: χ 2 (1) 9.05*** 8.91*** 8.61** 8.52***
Numbers in parentheses are standard errors of the estimated coefficients. ***, **, and * represent
significance at the 1%, 5%, and 10% levels, respectively.
6. Conclusions
This study has employed a new
panel data set to test the impact
of environmental PRD on polluting
firms in Jiangsu province, China.
The data consist of ex ante and ex
post pollution measures for both rated
and unrated firms, enabling us to control
for confounding factors such as
time-variant technology improvement
and selection bias. Our results strongly
suggest that Green Watch had significantly
reduced pollution for the rated
firms, with particularly strong impacts
on firms with poor ratings. Among the
133