This paper studies the relationship between firms’ excess capacity and their environmental behavior by matching the environmental data of China’s major iron and steel firms with the Chinese Industrial Enterprises database. The findings are as follows. (1) A firm’s excess capacity leads to...

This paper studies the relationship between firms’ excess capacity and their environmental behavior by matching the environmental data of China’s major iron and steel firms with the Chinese Industrial Enterprises database. The findings are as follows. (1) A firm’s excess capacity leads to...