Greening your way to profits: Green strategies and green revenues

Zijie Huang, June Cao and Lei Pan

Finance Research Letters, 2024, vol. 61, issue C

Abstract: We examine hot-debated but underexplored questions of whether and how green strategies affect corporate green revenues. Using a generalized Difference-in-Differences (DiD) framework, we find that green strategies significantly enhance corporate green revenues in the presence of China's Emission Trading Scheme (ETS) pilot. This is consistent with the Porter Hypothesis. Our mechanism analyses document that green strategies increase green revenues by improving green quality and catalyzing environmentally friendly transformation. This study has important implications for policymakers and practitioners, offering new insights into the intended consequences and real outcomes of environmental regulations.

Keywords: Green revenues; Green strategies; Green quality; Environmentally friendly transformation (search for similar items in EconPapers)
JEL-codes: D22 G38 M48 Q56 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:61:y:2024:i:c:s154461232400059x

DOI: 10.1016/j.frl.2024.105029

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