Political promotion events and energy conservation decisions: Evidence from China

Gaowen Kong, Mianmian Ji and Yuemei Guo

Energy Economics, 2021, vol. 95, issue C

Abstract: Considering political promotion events in China, we investigate how politicians affect the energy conservation and emission reduction (ECER) behaviors of local firms. We find that political promotion significantly increases ECER and that this effect is particularly pronounced for firms with political connections and firms facing high financial constraints. We also explore a possible mechanism underlying this relationship: firms engaging in ECER for political reasons may be rewarded with additional government subsidies. Overall, this study sheds light on the determinants of firms' ECER from the perspective of the career concerns of local politicians and the economic consequences of ECER.

Keywords: Political promotion events; Local politicians; Energy conservation and emission reduction; Government subsidy (search for similar items in EconPapers)
JEL-codes: G32 J24 Q48 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:95:y:2021:i:c:s0140988321000402

DOI: 10.1016/j.eneco.2021.105135

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