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Li Y, Meng D, Wang L. The impact of corporate climate risk perception on green outward foreign direct investment. ENVIRONMENTAL SCIENCE AND POLLUTION RESEARCH INTERNATIONAL 2024; 31:45602-45621. [PMID: 38969884 DOI: 10.1007/s11356-024-34198-6] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [Abstract] [Key Words] [MESH Headings] [Grants] [Track Full Text] [Subscribe] [Scholar Register] [Received: 01/07/2024] [Accepted: 06/27/2024] [Indexed: 07/07/2024]
Abstract
How to address climate risks and achieve green transformation has become a critical issue that businesses urgently need to consider. We apply growth option theory and prospect theory to examine the impact of corporate climate risk perceptions on green outward foreign direct investment (GFDI) using a research sample of heavily polluting listed companies in China from 2009 to 2022. Our findings reveal that companies with higher perceived climate risks tend to increase their inclination towards GFDI, and the informal hierarchy of boards reinforces the positive effect of both. Supplementary analyses indicate that through GFDI, corporations can exert positive effects on their own environmental performance and future green innovations. The positive impact is notably more visible in nonstate-owned companies and sample units from provinces along the Belt and Road. These findings extend the economic consequences of climate risk at the firm level from the perspective of international business research and provide empirical references for firms to promote their own green transformation from a practical perspective.
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Affiliation(s)
- Yanxi Li
- School of Economics and Management, Dalian University of Technology, Dalian, 116024, China
| | - Delin Meng
- School of Economics and Management, Dalian University of Technology, Dalian, 116024, China.
| | - Lan Wang
- School of Business, Nankai University, Tianjin, 300110, China
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Yu Y, Liu J, Wang Q. Has environmental protection tax reform promoted green transformation of enterprises? Evidence from China. ENVIRONMENTAL SCIENCE AND POLLUTION RESEARCH INTERNATIONAL 2024; 31:29472-29496. [PMID: 38578592 DOI: 10.1007/s11356-024-32844-7] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [Abstract] [Key Words] [MESH Headings] [Grants] [Track Full Text] [Subscribe] [Scholar Register] [Received: 04/18/2023] [Accepted: 03/06/2024] [Indexed: 04/06/2024]
Abstract
Facing the increasingly stringent constraints of resources and the environment, the green transformation of enterprises is imperative. This study selects A-share listed companies in Shanghai and Shenzhen from 2014 to 2021 as samples, using the difference-in-differences method to examine the impact of the environmental protection tax reform (EPTR) on the green transformation of enterprises. The results indicate that the EPTR can promote the green transformation of enterprises, achieving this through three channels: raising the cost of pollution, strengthening the rigidity of law enforcement, and breaking the collusion between the government and enterprises. Notably, this promotional effect is more significant in non-state-owned enterprises, companies in the eastern and western regions, firms with low financing constraints, and those with high media attention. Further analysis shows that the EPTR has a positive impact on the green total factor productivity (GTFP) of enterprises, which implies that enterprises are not only proactively pushing for a green transformation at the strategic level but also taking practical actions. This study responds to the problem of the greening of tax system to promote the green development of enterprises from two aspects of enterprise strategic implementation and productivity and explores the impact mechanism from the perspective of institutional logic. It enriches the research on the effectiveness of the EPTR at the micro-level and broadens the research perspective on the impact mechanisms of environmental regulation. The findings of this study provide references for further optimising relevant policies and regulations and also offer insights for other countries and regions seeking sustainable development.
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Affiliation(s)
- Yaxi Yu
- School of Economics and Management, Southwest Jiaotong University, Chengdu, 610031, Sichuan, China
| | - Junqi Liu
- School of Business, Southwest University of Political Science and Law, Chongqing, 401120, China
| | - Qi Wang
- School of Architecture and Civil Engineering, Xihua University, Chengdu, 610039, Sichuan, China.
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Feng J, Wang Y, Xi W. Does green technology transformation alleviate corporate financial constraints? Evidence from Chinese listed firms. Heliyon 2024; 10:e27841. [PMID: 38533064 PMCID: PMC10963324 DOI: 10.1016/j.heliyon.2024.e27841] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [Abstract] [Key Words] [Track Full Text] [Download PDF] [Journal Information] [Subscribe] [Scholar Register] [Received: 09/16/2023] [Revised: 03/06/2024] [Accepted: 03/07/2024] [Indexed: 03/28/2024] Open
Abstract
Green technology transformation is crucial for China to achieve its carbon peak and carbon neutrality goals. We use green transformation keywords extracted from the annual reports of listed firms to construct a green technology transformation intensity index for enterprises and investigate the impact of green technology transformation on corporate financial constraints. Our findings indicate that green technology transformation significantly mitigates corporate financial constraints, with green subsidies and debt financing as crucial mechanisms. Moreover, this effect is particularly pronounced in high-carbon-intensity industries, firms with fewer political connections, and firms affected by the carbon trading pilot. Additionally, digital and green transformations have a synergistic effect on alleviating corporate financial constraints. Therefore, we should promote the green technology transformation of enterprises and guide green finance to serve the real economy, effectively solve the financing dilemma of green enterprises, and provide strong green kinetic energy for sustainable development.
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Affiliation(s)
- Jue Feng
- Department of Economics and Management, Yuncheng University, Yuncheng, China
- School of Finance, Zhongnan University of Economics and Law, Wuhan, China
| | - Yingdong Wang
- School of Finance, Zhongnan University of Economics and Law, Wuhan, China
- Strategic Studies Institute, Hubei Yangtze Labs, Wuhan, China
| | - Wenzhi Xi
- School of Statistics and Mathematics, Zhongnan University of Economics and Law, Wuhan, China
- Department of Statistics, The Chinese University of Hong Kong, Hong Kong, China
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Li C, Teng Y, Zhou Y, Feng X. Can environmental protection tax force enterprises to improve green technology innovation? ENVIRONMENTAL SCIENCE AND POLLUTION RESEARCH INTERNATIONAL 2024; 31:9371-9391. [PMID: 38190067 DOI: 10.1007/s11356-023-31736-6] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [Abstract] [Key Words] [MESH Headings] [Grants] [Track Full Text] [Subscribe] [Scholar Register] [Received: 10/21/2023] [Accepted: 12/20/2023] [Indexed: 01/09/2024]
Abstract
The introduction of an environmental protection tax enables a smooth shift from the sewerage charge system to the environmental protection tax scheme. This, in turn, promotes a more sustainable development of enterprise growth, emphasizing eco-friendliness. This is of immense importance in advancing environmentally aware practices and sustainability. Based on data collected from A-share listed companies in Shanghai and Shenzhen from 2014 to 2021, this paper investigates the influence of environmental protection taxes on the advancement of green technology and the underlying mechanisms. Taking the execution of the Environmental Protection Tax Law in 2018 as a quasi-natural experiment, a double-difference model is employed to examine the causal relationship between environmental protection taxes and the adoption of green technology by companies. The findings indicate that the introduction of an environmental tax could markedly enhance the extent of green technological innovation within corporations. The evidence arising from the testing mechanism implies that such a tax can encourage firms to boost their investments in research and development, upgrade their innovative human capital, and mitigate financing limitations. The study found that there is heterogeneity in the promotion effect of the environmental protection tax on the green technological innovation of businesses in different regions and provinces with varying tax burdens and types of equity capital. Further research shows that the environmental protection tax has a greater impact on the promotion of utility model patent applications for green technology innovation. This paper presents empirical evidence to support further enhancement of the environmental protection tax system. It recommends designing the environmental protection tax policy with consideration for enterprises and local conditions and bolstering the system's capacity for guiding and stimulating enterprises' green development.
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Affiliation(s)
- Cong Li
- School of Economics, Qingdao University, Qingdao, Shandong, China
| | - Yao Teng
- School of Economics and Management, China University of Petroleum-Beijing, Beijing, China
| | - Yunxu Zhou
- College of International Education, Qingdao University, Qingdao, Shandong, China.
| | - Xueting Feng
- School of Economics, Qingdao University, Qingdao, Shandong, China
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Wu Y, Hu J, Irfan M, Hu M. Vertical decentralization, environmental regulation, and enterprise pollution: An evolutionary game analysis. JOURNAL OF ENVIRONMENTAL MANAGEMENT 2024; 349:119449. [PMID: 37939469 DOI: 10.1016/j.jenvman.2023.119449] [Citation(s) in RCA: 4] [Impact Index Per Article: 4.0] [Reference Citation Analysis] [Abstract] [Key Words] [MESH Headings] [Track Full Text] [Subscribe] [Scholar Register] [Received: 04/28/2023] [Revised: 10/20/2023] [Accepted: 10/21/2023] [Indexed: 11/10/2023]
Abstract
Achieving sustainable economic development and mitigating climate change require effective green transformation management. This study builds an evolutionary game model for industrial enterprises, local governments, and the central government, analyzing the dynamic interactions among vertical decentralization, environmental regulation, and enterprise pollution. Our research reveals that increasing environmental taxes can incentivize industrial enterprises to adopt green transformation practices and promote governments at all administrative levels to supervise and enforce environmental regulations. Moreover, in the context of vertical decentralization, financial incentives provided by the central government to local governments become critical drivers for promoting green transformation. Furthermore, the additional social benefits resulting from local government supervision and governance are key factors in green transformation management, while the negative social effects of industrial enterprises not rectifying their actions are noteworthy. Our study emphasizes the need for an integrated framework incorporating these critical elements for successful green transition management. The findings of this research provide valuable insights for developing nations seeking to enhance their governance capacity throughout the green transformation process.
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Affiliation(s)
- Yuntao Wu
- School of Big Data Application and Economics, Guizhou University of Finance and Economics, Guiyang, Guizhou, 550025, China
| | - Jin Hu
- School of Big Data Application and Economics, Guizhou University of Finance and Economics, Guiyang, Guizhou, 550025, China.
| | - Muhammad Irfan
- School of Economics and Management, University of Chinese Academy of Sciences, Beijing 100190, China; Adnan Kassar School of Business, Lebanese American University, Beirut, Lebanon; School of Business Administration, ILMA University, Karachi, 75190, Pakistan
| | - Mingjun Hu
- School of Business, Wenzhou University, Wenzhou, 325035, China.
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Guan H, Zhang Y, Zhao A. Environmental taxes, enterprise innovation, and environmental total factor productivity-effect test based on Porter's hypothesis. ENVIRONMENTAL SCIENCE AND POLLUTION RESEARCH INTERNATIONAL 2023; 30:99885-99899. [PMID: 37620703 DOI: 10.1007/s11356-023-29407-7] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [Abstract] [Key Words] [MESH Headings] [Grants] [Track Full Text] [Subscribe] [Scholar Register] [Received: 03/01/2023] [Accepted: 08/16/2023] [Indexed: 08/26/2023]
Abstract
Under the increasingly severe environmental constraints, improving environmental total factor productivity (ETFP) is the fundamental way for the sustainable development of heavily polluting enterprises. Based on 3463 panel data of A-share listed companies in China from 2011 to 2019, this paper employs Porter's hypothesis (PH) framework to explore the impact of environmental tax (EN_T) on enterprise innovation and environmental total factor productivity for the heavily polluting manufacturing industry using the propensity score matching (PSM) method. The empirical results show the following. (i) Environmental taxes positively affect enterprise innovation (EI) and environmental total factor productivity (ETFP). (ii) Mechanism analysis verifies a partial mediating effect for EI between EN_T and ETFP. (iii) Regional heterogeneity analysis illustrates the differences in the impact of environmental taxes on innovation quality. (iv) Individual heterogeneity analysis shows that the "strong Porter hypothesis" is only valid for large-scale enterprises. The results are of great importance for both government and enterprises to improve the EN_T system and optimize the allocation of resources in realistic practice.
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Affiliation(s)
- Hongjun Guan
- School of Management Science and Engineering, Shandong University of Finance and Economic, Jinan, 250014, Shandong, China.
- Institute of Marine Economics and Management, Shandong University of Finance and Economic, Jinan, 250014, Shandong, China.
| | - Yingxue Zhang
- School of Management Science and Engineering, Shandong University of Finance and Economic, Jinan, 250014, Shandong, China
| | - Aiwu Zhao
- School of Management Science and Engineering, Shandong University of Finance and Economic, Jinan, 250014, Shandong, China
- Institute of Marine Economics and Management, Shandong University of Finance and Economic, Jinan, 250014, Shandong, China
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