Abstract
While participation in the international division of labor has led to rapid economic development, it has also resulted in pressing environmental issues in China. In the context of "building a resource-saving and environment-friendly society" and the current sustainability requirements, research on the environmental impact of Chinese paper companies from the perspective of Environmental Information Disclosure (EID) policy and trade has not yet reached a consensus. This study constructs an analytical framework for the EID policy impact mechanism and trade on the environmental effects of the paper industry and enterprises. It explores the direct and indirect effects of EID policy and import-and-export trade on the paper industry environmental effects using the Propensity Score Matching and Difference-in-Differences (PSM-DID) model. EID positively impacts the pollution reduction of enterprises mainly through the technical effect. Export trade positively impacts the reduction of enterprises' emissions through the technology effect. However, the demand of the international market increases the pollution from the paper industries, which has a negative impact. Importing will enable enterprises to obtain greater price advantages which can alleviate and transfer the costs brought by EID. This study analyzes the impact of trade on the environmental effects of Chinese paper enterprises and identifies the impact of China's EID policy and trade on enterprises' pollution emissions. It provides a theoretical and practical foundation for the Chinese government to formulate environmental and trade policies.