Navigating climate policy: Corporate lobbying strategies in response to intensified climate risk exposure

Anqi Jiao, Ran Sun and Honglin Ren

Energy Economics, 2025, vol. 148, issue C

Abstract: This study examines how firms strategically respond to heightened climate risk exposure, with a particular focus on corporate climate lobbying behavior. Our findings reveal a robust positive relation between firm-level climate risk exposure and corporate lobbying efforts on climate-related issues. Among the three climate risk components—regulatory, physical, and opportunity risks—the regulatory risk is the primary driver of the results. Causal relation is established using the U.S. withdrawal from the Paris Agreement in 2017 as a shock to firm climate risk exposure. Finally, we show that corporate climate lobbying reduces regulatory fragmentation and increases firms' greenhouse gas emissions. These results together suggest that firms strategically allocate political resources toward climate-related issues in response to climate risks, aiming to manage their exposures to climate risks.

Keywords: Stringent climate policy; Climate change exposure; Climate lobbying (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0140988325004943
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:148:y:2025:i:c:s0140988325004943

DOI: 10.1016/j.eneco.2025.108667

Access Statistics for this article

Energy Economics is currently edited by R. S. J. Tol, Beng Ang, Lance Bachmeier, Perry Sadorsky, Ugur Soytas and J. P. Weyant

More articles in Energy Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().