Can external pressure promote enterprise environmental investment? a study based on the dual perspectives of the public and the government

Environmental investment can reduce pollution and energy consumption, and is a crucial driver of sustainable development. However, as a typical fact, environmental investment means that enterprises need to invest huge sums of money at the initial stage and bear the risk of zero short-term return. Facilitating the implementation of environmental investments has emerged as a pressing issue that requires resolution. This paper analyzes external pressure’s influence on A-share enterprise environmental investment. The study finds: (1) public concern and government pressure enhance enterprises’ environmental investment. (2) Public and government play a synergy effect, and they can reinforce each other’s role in promoting environmental investment. (3) Mechanism analysis shows public concern improves environmental investment through the alleviating influence of financing constraints, and government supervision improves environmental investment through the enhancing influence of environmental information disclosure. (4) The heterogeneity test finds the industry competition, investors attention, tax incentives and enterprise digitalization can strengthen the influence of public and government on enterprise environmental investment. (5) The economic consequence test shows external pressure can empower enterprises’ green innovation by improving environmental investment. This paper offers theoretical and practical insights for the public and government to jointly govern the environment and promote reasonable investment.