Do public environmental concerns promote new energy enterprises' development? Evidence from a quasi-natural experiment

Yan Gu, Kung-Cheng Ho, Senmao Xia and Cheng Yan

Energy Economics, 2022, vol. 109, issue C

Abstract: We examine whether the public environmental concerns promote the development of new energy enterprises through a quasi-experiment China's extreme event of 2011 when the PM2.5 Surge incident escalated public environmental concerns. After this incident, the market power of new energy enterprises in severely polluted regions became 108% higher than that in the mildly polluted regions. It implies that public environmental concerns promote the development of new energy enterprises. This observation is limited to non-state-owned companies, companies without political connections, and regions without new energy subsidies. This increased market power of new energy enterprises with increasing public environmental concerns was because of sales increase instead of reduced non-operational costs. Overall, this study answers several interesting questions associated with the increasing public environmental concerns and the rapid development of energy enterprises.

Keywords: Public environmental concern; New energy enterprises; Market power; PM2.5 surge; Extreme event (search for similar items in EconPapers)
JEL-codes: G11 G32 N72 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:109:y:2022:i:c:s0140988322001438

DOI: 10.1016/j.eneco.2022.105967

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