Role of ESG investments in achieving COP-26 targets

Xiaoyuan Wang, Jiahaoran Wang, Weimin Guan and Farhad Taghizadeh-Hesary

Energy Economics, 2023, vol. 123, issue C

Abstract: This study aims to evaluate the relationship between Environmental, Social, and Governance (ESG) and the goals of COP-26 (reduction of greenhouse gas emissions) in China by applying the Autoregressive distributed lag (ARDL) bounds testing technique with annual data from to 1990–2021. The main findings confirmed that, in the long term, with a 1% improvement in ESG investment, GHG emissions of greenhouse gases in China will decrease by 0.0046%. Simultaneously, ESG had a negative and significant effect in the short term. With a 1% increase in this variable, China's greenhouse gas emissions will decrease by 1.391%. The recommended practical policies in this study are establishing an ESG-investing network (ESGIN), introduction and implementation of ESG investing law, improving digital ESG investing, and enhancing an ESG-oriented culture in business.

Keywords: ESG investing; COP-26; Greenhouse Gases reduction; China; ARDL bounds test (search for similar items in EconPapers)
JEL-codes: C32 G34 Q40 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:123:y:2023:i:c:s0140988323002554

DOI: 10.1016/j.eneco.2023.106757

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