How does the Paris Agreement affect firm productivity? International evidence

Jing Pang, Zhaoda Liu, Wanyue Hou and Yunqing Tao

Finance Research Letters, 2023, vol. 56, issue C

Abstract: Using the event study method, this study examines how the Paris Agreement affects firm productivity in the long and short term. With a sample of global listed firms from 2013 to 2020, we find that in the short term, the Paris Agreement has a negative "impact effect" on firms’ total factor productivity (TFP). However, in the long term, it shows a positive "optimization effect" on firms’ TFP. Furthermore, economic policy uncertainty and firms’ risks mediate the effect of the Paris Agreement on firms’ TFP in the short term; while green innovation mediates its effect in the long term.

Keywords: Paris agreement; Firm productivity; Economic uncertainty; Green innovation (search for similar items in EconPapers)
JEL-codes: K33 M14 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:56:y:2023:i:c:s1544612323005226

DOI: 10.1016/j.frl.2023.104150

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