Institutional Legitimacy and Voluntary Environmental Certification: Diffusion Mechanisms of Green Factory Standards in China

In the context of global sustainable development and the “dual carbon” goals, environmental protection has become a crucial issue that cannot be ignored in the economic development of various countries. In particular, the Pearl River Delta region, as an important base for China’s manufacturing industry, is facing huge pressures and challenges in accelerating transformation and promoting green development. This paper selects the data of A-share manufacturing listed companies in the Pearl River Delta region from 2014 to 2021 as the research sample and uses methods such as the multi-period difference-in-differences model to examine the non-binding impact of green factory certification on non-certified enterprises. Furthermore, through channels such as resource acquisition, market competition, and information disclosure, the study analyzes how green factory certification influences the environmental protection investment behavior of non-certified enterprises. The research finds that green factory certification has a significant positive effect on the environmental investment of non-certified companies. It also reveals an inverted U-shaped relationship between the number of green factories and the environmental investment of non-certified companies. Additionally, the article points out that in regions with weaker mandatory environmental regulations, the non-binding impact of voluntary environmental regulations is more significant.