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Is ESG improvement an efficient green solution for resource curse vulnerability of enterprise management? Evidence from fossil fuels extraction industry

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  • Ding, Shunli
  • Huang, Minghao

Abstract

The resource curse phenomenon poses serious challenges for many economies globally. This study examines the impact of Environmental, Social, and Governance (ESG) investments on the Resource Curse Vulnerability Index for 40 Chinese fossil fuel enterprises listed on the Shanghai Stock Exchange from 2016 to 2020. Using an autoregressive distributed lag approach, results show that ESG investments reduce vulnerability, with a 1% increase leading to a 0.43% decrease in the short term and 0.69% in the long term. However, higher total liabilities and increased Research and Development (R&D) expenditures exacerbate vulnerability. These findings suggest that financial strain and management complexity heighten resource curse risks. Policies promoting robust ESG standards, transparent reporting, and stricter anti-greenwashing regulations are crucial for sustainable enterprise management.

Suggested Citation

  • Ding, Shunli & Huang, Minghao, 2024. "Is ESG improvement an efficient green solution for resource curse vulnerability of enterprise management? Evidence from fossil fuels extraction industry," Resources Policy, Elsevier, vol. 98(C).
    • Handle: RePEc:eee:jrpoli:v:98:y:2024:i:c:s0301420724007190
    DOI: 10.1016/j.resourpol.2024.105352
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    More about this item

    Keywords

    China; Resource curse vulnerability index; ESG investment; Fossil fuels enterprises;
    All these keywords.

    JEL classification:

    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • Q33 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Resource Booms (Dutch Disease)
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources

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