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Can Carbon Neutrality Commitment Contribute to the Sustainable Development of China’s New Energy Companies?

Author

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  • Jing Deng

    (School of Economics and Management, Beijing Forestry University, Beijing 100083, China)

  • Yun Zhang

    (School of Economics and Management, Beijing Forestry University, Beijing 100083, China)

  • Xiaoyun Xing

    (School of Economics and Management, Beijing Forestry University, Beijing 100083, China)

  • Cheng Liu

    (Research Centre for the Two Mountains Theory and Sustainable Development, Beijing Forestry University, Beijing 100083, China)

Abstract

Developing new energy is one of the most important measures to implement global carbon neutrality. Under the constraints of carbon emission reduction, the question of how to achieve the sustainable development of new energy enterprises has become an important issue among managers and investors. This study selects Chinese listed companies in the new energy industry as the research sample, employs the DID method and uses panel data to explore the role of carbon neutrality commitment in the sustainable growth of new energy companies. The results show that the carbon neutrality commitment has greatly improved the sustainable development of Chinese new energy companies, with the internal profitability and external investor sentiment of the enterprises being important mediating variables. Moreover, the effect of the carbon neutrality commitment on the sustainable growth of non-state-owned new energy firms is much more significant compared with that of state-owned enterprises, and the effect is more robust in the east than in the central and western regions. Based on the conclusions, this study provides practical implications for managers, investors and policymakers in order to promote the sustainable growth of new energy firms.

Suggested Citation

  • Jing Deng & Yun Zhang & Xiaoyun Xing & Cheng Liu, 2022. "Can Carbon Neutrality Commitment Contribute to the Sustainable Development of China’s New Energy Companies?," Sustainability, MDPI, vol. 14(18), pages 1-20, September.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:18:p:11308-:d:910607
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    References listed on IDEAS

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    Cited by:

    1. Jing Deng & Jingxuan Lu & Yujie Zheng & Xiaoyun Xing & Cheng Liu & Tao Qin, 2022. "The Impact of the COVID-19 Pandemic on the Connectedness between Green Industries and Financial Markets in China: Evidence from Time-Frequency Domain with Portfolio Implications," Sustainability, MDPI, vol. 14(20), pages 1-24, October.

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