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Would macro policy promote green and low-carbon transformation of energy companies?

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  • Ma, Li
  • Li, Danna

Abstract

Promoting energy efficiency optimization and upgrading the energy structure is a crucial pathway for energy companies to achieve a green and low-carbon transformation. This paper first constructs an endogenous growth E-DSGE model to analyze the impact of environmental regulation policy on energy efficiency optimization and carbon reduction. It further investigates the role of targeted monetary policy in advancing energy structure upgrade and estimates the optimal regulatory policy mix for carbon reduction transformation. The findings indicate that while environmental regulation policy can enhance energy efficiency, their effects are limited and may not support expanded production. Targeted monetary policy, however, can gradually upgrade energy structures while ensuring energy supply. The optimal combination of macroeconomic control policies can enhance social welfare and promote the green and low-carbon transformation of energy firms. Policy recommendations include formulating a comprehensive macroeconomic strategy, utilizing environmental regulations to promote energy efficiency, and employing targeted monetary policy to advance energy infrastructure upgrades. By coordinating fiscal, monetary, and environmental policies, the green and low-carbon transformation of energy firms can be effectively supported.

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  • Ma, Li & Li, Danna, 2024. "Would macro policy promote green and low-carbon transformation of energy companies?," International Review of Financial Analysis, Elsevier, vol. 96(PB).
    • Handle: RePEc:eee:finana:v:96:y:2024:i:pb:s1057521924007233
    DOI: 10.1016/j.irfa.2024.103791
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