Ren, Xiaohang and Zhang, Xiao and Yan, Cheng and Gozgor, Giray (2022) Climate policy uncertainty and firm-level total factor productivity: Evidence from China. Energy Economics, 113. p. 106209. DOI https://doi.org/10.1016/j.eneco.2022.106209
Ren, Xiaohang and Zhang, Xiao and Yan, Cheng and Gozgor, Giray (2022) Climate policy uncertainty and firm-level total factor productivity: Evidence from China. Energy Economics, 113. p. 106209. DOI https://doi.org/10.1016/j.eneco.2022.106209
Ren, Xiaohang and Zhang, Xiao and Yan, Cheng and Gozgor, Giray (2022) Climate policy uncertainty and firm-level total factor productivity: Evidence from China. Energy Economics, 113. p. 106209. DOI https://doi.org/10.1016/j.eneco.2022.106209
Abstract
Using 2605 Chinese A-share listed companies in the mining, manufacturing, and energy production and supply sectors from 2009 to 2020, we examine the relationship between climate policy uncertainty (CPU) and firm-level total factor productivity (TFP). The main findings are as follows: First, CPU significantly reduces firm-level TFP, with a greater impact on low-productivity firms than on high-productivity firms; second, the negative effect of CPU on firm-level TFP is most pronounced for non-state-owned, labor-intensive, and capital-intensive companies; third, CPU hinders research and development investment and reduces the amount of free cash flow. These results indicate that CPU exerts negative impacts on firm-level TFP mainly via its effects on the capital status of the companies. Our findings remain valid after a series of robustness tests and controlling for endogeneity. The government should introduce forward-looking climate policies to reduce the negative impact of policy uncertainty.
Item Type: | Article |
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Uncontrolled Keywords: | Climate policy uncertainty; Climate change; Total factor productivity; China |
Divisions: | Faculty of Social Sciences Faculty of Social Sciences > Essex Business School |
SWORD Depositor: | Unnamed user with email elements@essex.ac.uk |
Depositing User: | Unnamed user with email elements@essex.ac.uk |
Date Deposited: | 05 Oct 2022 16:05 |
Last Modified: | 30 Oct 2024 20:50 |
URI: | http://repository.essex.ac.uk/id/eprint/33201 |
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