Environmental Pollution Liability Insurance of Health Risk and Corporate Environmental Performance: Evidence From China

Abstract

Environmental pollution liability insurance (EPLI) is a type of insurance purchased by an enterprise to compensate the loss of the victims in the event of an environmental pollution incident. Although EPLI can realize the post-treatment of environmental pollution to a certain extent, there is still less understanding of whether EPLI can improve the environmental performance of enterprises. This study takes A-share listed companies in heavily polluting industries as the research object, determines the treatment group samples according to the Insurance coverage list published by the Ministry of Environmental Protection in 2014 and 2015, and then constructs the empirical test model. In order to ensure that there is no sample selection bias, the PSM method is used to preprocess the samples in this study to ensure the robustness of the conclusions. The empirical tests show that EPLI can significantly improve corporate environmental performance. Further analysis showed that higher public visibility is conducive to the positive environmental effects of EPLI. Compared with state-owned enterprises, non-state-owned enterprises have more significant implementation effects after introducing EPLI. On further examination, the result indicates that environmental pollution liability insurance can improve environmental performance by alleviating corporate financing constraints. The findings of this paper enrich the theory of the economic impact of environmental pollution liability insurance, which has some meaningful theoretical guidance for enterprises and policy makers.

Party membership and self-assessed health: Evidence from the Communist Party of China

“…These two types of public health insurance differ substantively. SM contributions are drawn from finance rather than the insured persons, while BHI contributions are primarily made by the insured individuals ( Wu et al, 2022 ). More importantly, the insurance benefits of SM are much higher than those offered by BHI.…”

Population ageing and sustainability of healthcare financing in China

“…Third, the ageing of the population is not identical in different geographic regions of China. There are disparities between urban and rural areas [ 8 ]. The proportion of elderly population in rural areas is higher than that in urban areas, as well as the rate of ageing [ 9 ].…”

Environmental Pollution Liability Insurance and Corporate Performance: Evidence from China in the Perspective of Green Development

“…Considering the significant volatility of China's stock market, this paper uses Tobin's Q-value A as an indicator to measure corporate performance. Referring to the studies of Wu et al [50] and Chen et al [34], this paper uses the decision of whether to purchase EPLI as an explanatory variable. If the insured corporations or its parent corporation is on the 2014 and 2015 "Environmental Pollution Liability Insurance Corporations List" and the contract is still in effect, it will be assigned a value of 1.…”