IDEAS home Printed from https://ideas.repec.org/a/eee/eneeco/v144y2025ics0140988325002154.html
   My bibliography  Save this article

Global reach, local impact: How China's outward foreign direct investment shapes corporate carbon risk management?

Author

Listed:
  • Tao, Miaomiao
  • Wang, Jianda
  • Roubaud, David
  • Qi, Lingli

Abstract

Outward Foreign Direct Investment (OFDI) has emerged as a pivotal driver of globalization, enabling firms to broaden their reach across borders and tap into diverse resources. We present evidence supporting the role of OFDI in mitigating corporate carbon risk. However, the extent of the underlying mitigation effect varies depending on factors such as corporate nature, ESG ratings, and financial constraints. We also identify several intermediaries through which OFDI exerts its mitigating influence, such as corporate reputation, downside risk exposure, debt financing costs, and the firm's ability to innovate in green technologies. Further exploration substantiates the synergistic effects between OFDI and the emissions trading scheme, which together help further reduce corporate carbon risk. These findings offer valuable insights into how enhancing OFDI can mitigate carbon risk, thus supporting China's transition toward a low-carbon economy.

Suggested Citation

  • Tao, Miaomiao & Wang, Jianda & Roubaud, David & Qi, Lingli, 2025. "Global reach, local impact: How China's outward foreign direct investment shapes corporate carbon risk management?," Energy Economics, Elsevier, vol. 144(C).
    • Handle: RePEc:eee:eneeco:v:144:y:2025:i:c:s0140988325002154
    DOI: 10.1016/j.eneco.2025.108391
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0140988325002154
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.eneco.2025.108391?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:eneeco:v:144:y:2025:i:c:s0140988325002154. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/eneco .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.