Energy-Consuming Right Trading Policy and Corporate ESG Performance: Quasi-Natural Experimental Evidence from China

Qiuyan Yan and Kai Wan ()
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Qiuyan Yan: Business School, Central University of Finance and Economics, Beijing 100081, China
Kai Wan: School of Economics, Hangzhou Dianzi University, Hangzhou 310018, China

Energies, 2024, vol. 17, issue 13, 1-20

Abstract: The energy-consuming right trading policy (ECRTP) represents a significant initiative to promote the sustainable development of Chinese enterprises. This study employs the difference-in-differences methodology to analyze how ECRTP influences ESG performance based on data from A-share listed industrial enterprises in China from 2006 to 2020. The findings indicate that ECRTP effectively enhances corporate ESG performance, and this conclusion holds valid following a battery of robustness checks. Moreover, ECRTP improves corporate ESG performance by promoting green technological innovation and green perceptions among executives. Tests for heterogeneity show that the ECRTP exerts a more pronounced influence on ESG performance for enterprises located in regions with high public environmental awareness, heavily polluting industries, and coastal areas. This study broadens the literature on ECRTP effectiveness evaluation, providing valuable insights for refining the design of these policies, promoting their implementation, and facilitating the achievement of dual control targets for energy consumption.

Keywords: energy-consuming right trading policy; corporate ESG performance; green technology innovation; executive green perceptions (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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