Effect of low-carbon innovation on carbon risk: International firm-level investigation

Liyan Han, Chen Xie, Jiayu Jin and Yang Zhao

International Review of Financial Analysis, 2023, vol. 90, issue C

Abstract: In our study, leveraging a comprehensive dataset spanning 25 economies from 2007 to 2020, we demonstrate the role of low-carbon innovation in mitigating carbon risk by diminishing both the total emissions and emission intensity of firms. Overall, our findings highlight the profound influence of low-carbon innovation in curtailing carbon emissions. Remarkably, compared to advanced economies, emerging ones exhibit a more pronounced trend in the benefits of low-carbon innovation. Our analysis also underscores the pivotal role of the Paris Climate Agreement in amplifying the impact of low-carbon innovation, an effect that became especially salient during the 2008 financial crisis. Furthermore, we identify a discernible mediating role of energy consumption and intensity in the nexus between low-carbon innovation and carbon risk reduction. We also elucidate the heterogeneous effects of low-carbon innovation across different industries.

Keywords: Carbon risk; Low-carbon innovation; Emission intensity; Energy intensity; Mediating effect (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1057521923004283
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:finana:v:90:y:2023:i:c:s1057521923004283

DOI: 10.1016/j.irfa.2023.102912

Access Statistics for this article

International Review of Financial Analysis is currently edited by B.M. Lucey

More articles in International Review of Financial Analysis from Elsevier
Bibliographic data for series maintained by Catherine Liu ().