How Green Talk Boosts Dirty Factories' Wallets

Climate change is a massive global problem, and China's got a plan: the "dual-carbon" target. This means companies that pollute a lot, especially in the heavy industry, have to cut down on their carbon emissions. Sounds tough, right? But there's a twist. When these companies reveal info about their carbon footprint, they might actually become more profitable. How? By reducing the cost of borrowing money and getting more investors on board. A team looked at data from these heavy polluters listed in Shanghai and Shenzhen from 2013 to 2023. They found that sharing carbon info can boost financial performance. This happens more in the central and western regions of China. Why? The theories of signaling, rent-seeking, and sustainable development help explain this. Creditors and investors play a big role. The study also dives into how this works in different regions, considering China's huge size and varying economic levels.