We find that firms reduce toxic emissions at their local plants following EPA enforcement actions against nearby plants operated by peer firms that compete in the same product market. These reductions are more pronounced for plants located near socially responsible mutual funds (SRMFs) that hold these plants’ parent firms’ shares. Close proximity to SRMFs is associated with real investment in abatement measures to mitigate emissions. While plants increase emissions again in the long run, such reversals do not occur in plants located near SRMFs. Taken together, our results suggest that local SRMFs complement EPA enforcement in influencing plants’ emissions.

中文翻译：

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合力：EPA 执法行动的溢出效应和社会责任投资者的作用

我们发现，在 EPA 对附近由在同一产品市场竞争的同行公司经营的工厂采取执法行动后，公司减少了当地工厂的有毒物质排放。对于位于持有这些工厂母公司股份的社会责任共同基金 (SRMF) 附近的工厂，这些减少更为明显。接近 SRMF 与减少排放的减排措施的实际投资有关。虽然从长远来看工厂会再次增加排放，但这种逆转不会发生在位于 SRMF 附近的工厂中。总而言之，我们的结果表明，当地 SRMF 在影响工厂排放方面补充了 EPA 执法。