The long-term effects of transformation and upgrading policies on the market performance of China's coal-fire power generation industry

Yan Li, Kailu Zhang, Bojiao Mu () and Xinran Mo
Additional contact information
Yan Li: China University of Mining and Technology-Beijing
Kailu Zhang: China University of Mining and Technology-Beijing
Bojiao Mu: China University of Geosciences (Beijing)
Xinran Mo: University of International Business and Economics

Mitigation and Adaptation Strategies for Global Change, 2024, vol. 29, issue 7, No 6, 38 pages

Abstract: Abstract Transformation and upgrading of traditional energy industries have increasing theoretical and practical relevance in today’s economic orientation of sustainable development. Many governments have tried to issue a batch of transformation and upgrading (TFU) policies with the hope of guiding traditional enterprises’ smooth change. However, there is a dearth of systematic research on the long-term effects of TFU policies, which is not conducive to improving those policies. This paper aims to study what TFU policies generate to concerned traditional energy enterprises in the long run from a perspective of capital asset pricing. Taking China’s coal-fired power generation industry, the typical and the largest traditional energy industry, as the sample, 318 TFU policies issued by the Chinese government and the relevant data of A-share listed coal and thermal power enterprises in the industry were collected. The Latent Dirichlet Allocation model was employed to categorize the TFU policies into six types, and then the Jensen alpha model was built to test the long-term effects of each type of TFU policy at varying lagged periods. The results show that under all the types of TFU policies, the Jensen alpha values of both coal and thermal power stock portfolios are significantly negative at each lagged period, implying negative long-term effects. Further statistical analysis shows that the Jensen alpha values of central state-owned enterprises (SOEs) are stochastically larger than those of local SOEs under most types of TFU policies, indicating that central SOEs are generally less negatively affected. Moreover, the varying characteristics of the Jensen alpha values between coal and thermal power portfolios and between central and local SOEs were discussed.

Keywords: Transformation and upgrading policy; Jensen alpha; Long-term effects; Market performance; Coal-fired power generation industry (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s11027-024-10158-w Abstract (text/html)
Access to the full text of the articles in this series is restricted.

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:spr:masfgc:v:29:y:2024:i:7:d:10.1007_s11027-024-10158-w

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/11027

DOI: 10.1007/s11027-024-10158-w

Access Statistics for this article

Mitigation and Adaptation Strategies for Global Change is currently edited by Robert Dixon

More articles in Mitigation and Adaptation Strategies for Global Change from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().