The Green Tobin's q: theory and evidence

João Ricardo Faria, Greg Tindall and Siri Terjesen

Energy Economics, 2022, vol. 110, issue C

Abstract: We derive from a dynamic stochastic model a “Green Tobin's q” as a function of a firm's green efforts (technology and pressure), as well as traditional capital stocks and investments. The evidence focuses on the oil industry which is inextricably bound to the debate on climate change. Our regression results indicate a negative impact on Tobin's q from green technologies, and a positive impact on Tobin's q from green stockholder pressure. In addition to adding a theoretical model, we provide empirical evidence regarding pressing issues in the energy transition.

Keywords: Tobin's q; Green patents; Firm investments; Climate change; Shareholder proposals (search for similar items in EconPapers)
JEL-codes: G32 L29 Q55 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:110:y:2022:i:c:s014098832200202x

DOI: 10.1016/j.eneco.2022.106033

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