Abstract
BACKGROUND: As China restructures its energy landscape through transition, environmental monitoring serves as vital technological infrastructure. It directly supports the achievement of carbon neutrality objectives. This paper uses the number and density of environmental monitoring stations established around industrial enterprises as proxy variables for environmental supervision and the China Industrial Enterprise Pollution Emission Database. It explores the impact of regional environmental monitoring on enterprise reduction of pollution and carbon emissions based on the regulatory and geographic structure. RESULTS: The empirical results of this paper indicate that (1) Environmental monitoring significantly reduces firms' SO₂ emissions and emission intensity, and also has a marked abatement effect on other pollutants such as exhaust gases and industrial smoke (dust) particulates; (2) The decline in emissions occurs mainly through three channels: reducing the scale of energy use, lowering energy intensity, and promoting production technology upgrades; (3) Environmental monitoring exhibits a significant co-benefit of pollution reduction and carbon mitigation, decreasing not only pollutant emissions but also the total volume and intensity of CO₂ emissions. CONCLUSION: This study demonstrates that environmental monitoring can effectively drive enterprises to reduce energy consumption, enhance technological innovation, and achieve coordinated pollution and carbon reduction. Policy implications suggest that strengthening monitoring networks and adopting differentiated regulatory mechanisms are crucial for promoting energy efficiency, fostering green innovation, and advancing the realization of China's "dual carbon" goals.