Carbon emission trading policy, information disclosure, and effects of pollution reduction and carbon mitigation: Empirical evidence from China

Synergistically advancing pollution control and decarbonization represents an essential pathway for accelerating sustainable progress. Leveraging a quasi-natural experiment framework centered on China’s carbon emission trading policy (CETP), this investigation employs conventional and spatial difference-in-differences (DID) analytical model to systematically assess the coordinated impacts and spatial spillover effects of CETP on environmental improvement and climate objectives. The study further explores the underlying mechanisms through the lens of corporate carbon information disclosure. Empirical findings reveal that CETP generates substantial coordinated benefits in both air pollutant and carbon emissions. Furthermore, the combined outcomes of pollution mitigation and carbon emission abatement predominantly manifest through the channel of CETP to stimulate corporate environmental information disclosure, particularly strengthening the focus on disclosing low-carbon management, emission metrics, and decarbonization outcomes. Regarding spatial influences, CETP has led to notable decreases in regional PM 2.5 concentrations and CO 2 emissions while generating beneficial spillover effects on neighboring regions. This study presents both theoretical frameworks and empirical evidence to assess the policy effectiveness, thereby supporting the sustainable development of carbon trading mechanisms.