Does ESG investment reduce carbon emissions in China?

Yingnan Cong; Chen Zhu; Yufei Hou; Shuairu Tian; Xiaojing Cai; Xiaojing Cai

doi:10.3389/fenvs.2022.977049

Frontiers in Environmental Science (Oct 2022)

Does ESG investment reduce carbon emissions in China?

Yingnan Cong,
Chen Zhu,
Yufei Hou,
Shuairu Tian,
Xiaojing Cai,
Xiaojing Cai

Affiliations

Yingnan Cong: Business School, China University of Political Science and Law, Beijing, China
Chen Zhu: Business School, China University of Political Science and Law, Beijing, China
Yufei Hou: Business School, China University of Political Science and Law, Beijing, China
Shuairu Tian: Research Center of Finance, Shanghai Business School, Shanghai, China
Xiaojing Cai: Graduate School of Humanities and Social Sciences, Okayama University, Okayama, Japan
Xiaojing Cai: Graduate School of Economics, Kobe University, Kobe, Japan

DOI: https://doi.org/10.3389/fenvs.2022.977049
Journal volume & issue: Vol. 10

Abstract

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This study explores the relationship between ESG investments and carbon emissions in China. Our results show that 1% increase in environmental investments would cause 0.246% decrease in CO2 emissions and 0.558% decrease in carbon emission intensity. The impact of ESG investment is heterogeneous across the developed and underdeveloped regions. Environmental investments in the advanced eastern region have significantly improved carbon productivity. In contrast, environmental investments in the central and western regions significantly reduced carbon emissions, but they have little impact on carbon productivity.

Published in Frontiers in Environmental Science

ISSN: 2296-665X (Online)
Publisher: Frontiers Media S.A.
Country of publisher: Switzerland
LCC subjects: Geography. Anthropology. Recreation: Environmental sciences
Website: https://www.frontiersin.org/journals/environmental-science

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