IDEAS home Printed from https://ideas.repec.org/a/sae/enejou/v45y2024i5p33-63.html
   My bibliography  Save this article

Heterogeneous Effect of Renewable Energy Policies on Resource Misallocation: Evidence From Chinese Zombie Firms

Author

Listed:
  • Jiahui Yi
  • Sheng Dai
  • Jinhua Cheng
  • Yueer Dai

Abstract

Renewable energy policies are recognized as the cornerstone of the low-carbon energy transition. However, they may cause resource misallocation between firms due to information asymmetries and differences in productivity, marginal costs, and revenues. This paper investigates the direct effects of heterogeneous renewable energy policies on resource misallocation and the mediating effects of zombie firms by using the Chinese renewable energy listed firms in the period 1995 to 2020. The empirical results show that the regulation policy not only significantly reduces resource misallocation directly but also indirectly decreases misallocation by inhibiting the formation of zombie firms, whereas economic incentives can significantly result in resource misallocation and exacerbate it by breeding zombie firms. Furthermore, heterogeneous policy effects and the mediating effects of zombie firms are found to be associated with financial dependence, factor intensity, and location. The results have profound policy implications, calling for reasonable regulations, efficient economic incentives, and scientifically targeted policies for renewable energy firms. JEL Classification: C33, C54, O13, Q28, Q48

Suggested Citation

  • Jiahui Yi & Sheng Dai & Jinhua Cheng & Yueer Dai, 2024. "Heterogeneous Effect of Renewable Energy Policies on Resource Misallocation: Evidence From Chinese Zombie Firms," The Energy Journal, , vol. 45(5), pages 33-63, September.
  • Handle: RePEc:sae:enejou:v:45:y:2024:i:5:p:33-63
    DOI: 10.1177/01956574241240290
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/01956574241240290
    Download Restriction: no

    File URL: https://libkey.io/10.1177/01956574241240290?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
    ---><---

    References listed on IDEAS

    as
    1. Xinshu Zhao & John G. Lynch & Qimei Chen, 2010. "Reconsidering Baron and Kenny: Myths and Truths about Mediation Analysis," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 37(2), pages 197-206, August.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. S. Arunachalam & Sridhar N. Ramaswami & Pol Herrmann & Doug Walker, 2018. "Innovation pathway to profitability: the role of entrepreneurial orientation and marketing capabilities," Journal of the Academy of Marketing Science, Springer, vol. 46(4), pages 744-766, July.
    2. Bilgihan, Anil & Madanoglu, Melih & Ricci, Peter, 2016. "Service attributes as drivers of behavioral loyalty in casinos: The mediating effect of attitudinal loyalty," Journal of Retailing and Consumer Services, Elsevier, vol. 31(C), pages 14-21.
    3. Kareklas, Ioannis & Muehling, Darrel D. & King, Skyler, 2019. "The effect of color and self-view priming in persuasive communications," Journal of Business Research, Elsevier, vol. 98(C), pages 33-49.
    4. Ashish Arora & Michelle Gittelman & Sarah Kaplan & John Lynch & Will Mitchell & Nicolaj Siggelkow & Aaron K. Chatterji & Michael Findley & Nathan M. Jensen & Stephan Meier & Daniel Nielson, 2016. "Field experiments in strategy research," Strategic Management Journal, Wiley Blackwell, vol. 37(1), pages 116-132, January.
    5. Yi Yong Lee & Chin Lay Gan & Tze Wei Liew, 2023. "Thwarting Instant Messaging Phishing Attacks: The Role of Self-Efficacy and the Mediating Effect of Attitude towards Online Sharing of Personal Information," IJERPH, MDPI, vol. 20(4), pages 1-23, February.
    6. FeCheng Ma & Farhan Khan & Kashif Ullah Khan & Si XiangYun, 2021. "Investigating the Impact of Information Technology, Absorptive Capacity, and Dynamic Capabilities on Firm Performance: An Empirical Study," SAGE Open, , vol. 11(4), pages 21582440211, November.
    7. Mbassi, Christophe Martial & Messono, Omang Ombolo, 2023. "Historical technology and current economic development: Reassessing the nature of the relationship," Technological Forecasting and Social Change, Elsevier, vol. 195(C).
    8. Nosheena Yasir & Nasir Mahmood & Hafiz Shakir Mehmood & Osama Rashid & An Liren, 2021. "The Integrated Role of Personal Values and Theory of Planned Behavior to Form a Sustainable Entrepreneurial Intention," Sustainability, MDPI, vol. 13(16), pages 1-21, August.
    9. Jianzhuang Zheng & Muhammad Usman Khurram & Lifeng Chen, 2022. "Can Green Innovation Affect ESG Ratings and Financial Performance? Evidence from Chinese GEM Listed Companies," Sustainability, MDPI, vol. 14(14), pages 1-32, July.
    10. Mia M. Vainio & Daiva Daukantaitė, 2016. "Grit and Different Aspects of Well-Being: Direct and Indirect Relationships via Sense of Coherence and Authenticity," Journal of Happiness Studies, Springer, vol. 17(5), pages 2119-2147, October.
    11. Christian W. Scheiner & Christian V. Baccarella & John Bessant & Kai-Ingo Voigt, 2018. "Participation Motives, Moral Disengagement, And Unethical Behaviour In Idea Competitions," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 22(06), pages 1-24, August.
    12. Yu Ding & Wayne S. DeSarbo & Dominique M. Hanssens & Kamel Jedidi & John G. Lynch & Donald R. Lehmann, 2020. "The past, present, and future of measurement and methods in marketing analysis," Marketing Letters, Springer, vol. 31(2), pages 175-186, September.
    13. G. Rejikumar & Aswathy Asokan-Ajitha & Sofi Dinesh & Ajay Jose, 2022. "The role of cognitive complexity and risk aversion in online herd behavior," Electronic Commerce Research, Springer, vol. 22(2), pages 585-621, June.
    14. Lefroy, Kathryn & Tsarenko, Yelena, 2014. "Dependence and effectiveness in the nonprofit-corporate alliance: The mediating effect of objectives achievement," Journal of Business Research, Elsevier, vol. 67(9), pages 1959-1966.
    15. Ah Jung Kim & Myung-Ho Chung, 2023. "Psychological Ownership and Ambivalent Employee Behaviors: A Moderated Mediation Model," SAGE Open, , vol. 13(1), pages 21582440231, March.
    16. Ashwin W. Joshi, 2017. "OEM implementation of supplier-developed component innovations: the role of supplier actions," Journal of the Academy of Marketing Science, Springer, vol. 45(4), pages 548-568, July.
    17. Thuy-Van Tran & Sinikka Lepistö & Janne Järvinen, 2021. "The relationship between subjectivity in managerial performance evaluation and the three dimensions of justice perception," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 32(3), pages 369-399, September.
    18. Jingsi Zhang & Liangqun Qi, 2021. "Crisis Preparedness of Healthcare Manufacturing Firms during the COVID-19 Outbreak: Digitalization and Servitization," IJERPH, MDPI, vol. 18(10), pages 1-23, May.
    19. Anxin Xu & Chenwen Wei & Manhua Zheng & Lili Sun & Decong Tang, 2022. "Influence of Perceived Value on Repurchase Intention of Green Agricultural Products: From the Perspective of Multi-Group Analysis," Sustainability, MDPI, vol. 14(22), pages 1-17, November.
    20. Carter, Kealy & Jayachandran, Satish & Murdock, Mitchel R., 2021. "Building A Sustainable Shelf: The Role of Firm Sustainability Reputation," Journal of Retailing, Elsevier, vol. 97(4), pages 507-522.

    More about this item

    Keywords

    economic incentives; regulation; renewable energy policy; resource misallocation; zombie firms;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • C54 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Quantitative Policy Modeling
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

    Statistics

    Access and download statistics

    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:sae:enejou:v:45:y:2024:i:5:p:33-63. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: SAGE Publications (email available below). General contact details of provider: .

    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.