The Motivation of Corporate Greenwashing: Evidence From Energy Consumption Intensity

Given that greenwashing is unlikely to disappear in the near future, exploring its potential positive effects holds significant importance. This study investigates the impact of greenwashing on corporate energy consumption intensity (ECI) based on the underlying motivations for greenwashing. Using micro data of A-share listed companies from 2012 to 2020, we find that greenwashing can promote ECI reduction by reducing financial constraints and promoting corporate reputation, confirming the new motivation for greenwashing. This result remains stable after a series of robustness and endogeneity tests. Additionally, the effect is stronger in companies with lower levels of environmental regulation and in heavily polluting industries. Moreover, taking gender and information into consideration, we find female executives and high information transparency will negatively affect the motivation of greenwashing on ECI. We shed new light on the motivation of corporate greenwashing, confirming that greenwashing can benefit corporate green development and providing suggestions for policymakers.