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Energy-Consuming Right Trading Policy and Corporate ESG Performance: Quasi-Natural Experimental Evidence from China

Author

Listed:
  • Qiuyan Yan

    (Business School, Central University of Finance and Economics, Beijing 100081, China)

  • Kai Wan

    (School of Economics, Hangzhou Dianzi University, Hangzhou 310018, China)

Abstract

The energy-consuming right trading policy (ECRTP) represents a significant initiative to promote the sustainable development of Chinese enterprises. This study employs the difference-in-differences methodology to analyze how ECRTP influences ESG performance based on data from A-share listed industrial enterprises in China from 2006 to 2020. The findings indicate that ECRTP effectively enhances corporate ESG performance, and this conclusion holds valid following a battery of robustness checks. Moreover, ECRTP improves corporate ESG performance by promoting green technological innovation and green perceptions among executives. Tests for heterogeneity show that the ECRTP exerts a more pronounced influence on ESG performance for enterprises located in regions with high public environmental awareness, heavily polluting industries, and coastal areas. This study broadens the literature on ECRTP effectiveness evaluation, providing valuable insights for refining the design of these policies, promoting their implementation, and facilitating the achievement of dual control targets for energy consumption.

Suggested Citation

  • Qiuyan Yan & Kai Wan, 2024. "Energy-Consuming Right Trading Policy and Corporate ESG Performance: Quasi-Natural Experimental Evidence from China," Energies, MDPI, vol. 17(13), pages 1-20, July.
    • Handle: RePEc:gam:jeners:v:17:y:2024:i:13:p:3257-:d:1427765
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    References listed on IDEAS

    as
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    3. Gordon, Lawrence A. & Loeb, Martin P. & Tseng, Chih-Yang, 2009. "Enterprise risk management and firm performance: A contingency perspective," Journal of Accounting and Public Policy, Elsevier, vol. 28(4), pages 301-327, July.
    4. Pan, Yuling & Dong, Feng, 2022. "Design of energy use rights trading policy from the perspective of energy vulnerability," Energy Policy, Elsevier, vol. 160(C).
    5. Wang, Kaike & Su, Xuewei & Wang, Shuhong, 2023. "How does the energy-consuming rights trading policy affect China's carbon emission intensity?," Energy, Elsevier, vol. 276(C).
    Full references (including those not matched with items on IDEAS)

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