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. 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.
    2. 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.
    3. 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.
    4. 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.
    5. 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.
    6. 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.
    7. 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.
    8. Alessia Acampora & Michele Preziosi & Maria Claudia Lucchetti & Roberto Merli, 2022. "The Role of Hotel Environmental Communication and Guests’ Environmental Concern in Determining Guests’ Behavioral Intentions," Sustainability, MDPI, vol. 14(18), pages 1-23, September.
    9. Arne K. Albrecht & Gianfranco Walsh & Simon Brach & Dwayne D. Gremler & Erica Herpen, 2017. "The influence of service employees and other customers on customer unfriendliness: a social norms perspective," Journal of the Academy of Marketing Science, Springer, vol. 45(6), pages 827-847, November.
    10. Yi He & Qimei Chen & Dana L. Alden, 2016. "Time will tell: managing post-purchase changes in brand attitude," Journal of the Academy of Marketing Science, Springer, vol. 44(6), pages 791-805, November.
    11. Abu Elnasr E. Sobaih & Ahmed Hasanein & Ibrahim Elshaer, 2020. "Influences of Green Human Resources Management on Environmental Performance in Small Lodging Enterprises: The Role of Green Innovation," Sustainability, MDPI, vol. 12(24), pages 1-19, December.
    12. Chen, Yuanyuan & Wang, Haining & Cheng, Zhiming & Smyth, Russell, 2023. "Education and Migrant Health in China," Economic Modelling, Elsevier, vol. 121(C).
    13. Hanen Khemakhem & Paulina Arroyo & Julio Montecinos, 2023. "Gender diversity on board committees and ESG disclosure: evidence from Canada," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 27(4), pages 1397-1422, December.
    14. Wenigmann, Marc & Weiß, Julia & Heidelberg, Rahel, 2024. "Holding anti-feminist gender role beliefs mediate the relationship between family-related adverse childhood experiences and different forms of intimate partner violence perpetration in adulthood," Journal of Criminal Justice, Elsevier, vol. 93(C).
    15. Connie Bateman & Sean Valentine & Terri Rittenburg, 2013. "Ethical Decision Making in a Peer-to-Peer File Sharing Situation: The Role of Moral Absolutes and Social Consensus," Journal of Business Ethics, Springer, vol. 115(2), pages 229-240, June.
    16. Juan Sandoval-Reyes & Sandra Idrovo-Carlier & Edison Jair Duque-Oliva, 2021. "Remote Work, Work Stress, and Work–Life during Pandemic Times: A Latin America Situation," IJERPH, MDPI, vol. 18(13), pages 1-12, July.
    17. Inés López López & Salvador Ruiz de Maya, 2012. "When hedonic products help regulate my mood," Marketing Letters, Springer, vol. 23(3), pages 701-717, September.
    18. Pozharliev, Rumen & De Angelis, Matteo & Rossi, Dario & Bagozzi, Richard & Amatulli, Cesare, 2023. "I might try it: Marketing actions to reduce consumer disgust toward insect-based food," Journal of Retailing, Elsevier, vol. 99(1), pages 149-167.
    19. Xin Qin & Xin Liu & Jacob A. Brown & Xiaoming Zheng & Bradley P. Owens, 2021. "Humility Harmonized? Exploring Whether and How Leader and Employee Humility (In)Congruence Influences Employee Citizenship and Deviance Behaviors," Journal of Business Ethics, Springer, vol. 170(1), pages 147-165, April.
    20. Ostovan, Nima & Khalili Nasr, Arash, 2022. "The manifestation of luxury value dimensions in brand engagement in self-concept," Journal of Retailing and Consumer Services, Elsevier, vol. 66(C).

    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.