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Can Technological Innovation Bring an Economic and Environmental Benefit to Energy Firms: An Evidence from China?

Author

Listed:
  • Yue-Jun

    (School of Business, Hunan University, Changsha, Hunan 410082, China)

  • Ting Liang

    (School of Business, Hunan University, Changsha, Hunan 410082, ChinaAuthor-Name: Weijie Zhai)

  • Zongwu Cai

    (Department of Economics, The University of Kansas, Lawrence, KS 66045, USA)

Abstract

This paper investigates whether technological innovation can bring some economic and environmental benefits to energy firms. By analyzing data for energy firms in China from 2009 to 2017, this paper finds that technological innovation is not always beneficial to the multi-interests of energy firms. First, technological innovation does not necessarily fully promote the benefit-based performance of energy firms in China. Actually, technological innovation increases the excess returns but inhibits the operational efficiency of energy firms, and has no a significant impact on the firm value of energy firms. Moreover, technological innovation exacerbates the crash risks of energy firms, which is not conductive to the stability of energy financial market. Second, technological innovation may significantly reduce carbon emissions intensity and play an important role in improving the environmental performance of energy firms in China. Finally, a sharp rise in energy prices may inhibit technological innovation activities, and thus influencing the performance of energy firms.

Suggested Citation

  • Yue-Jun & Ting Liang & Zongwu Cai, 2021. "Can Technological Innovation Bring an Economic and Environmental Benefit to Energy Firms: An Evidence from China?," WORKING PAPERS SERIES IN THEORETICAL AND APPLIED ECONOMICS 202112, University of Kansas, Department of Economics, revised May 2021.
    • Handle: RePEc:kan:wpaper:202112
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    More about this item

    Keywords

    Technological innovation; Energy firms; Firm performance; Truncated regression model; Treatment effect model;
    All these keywords.

    JEL classification:

    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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