Energy Constraint in China at the Expense of Profitability?

Abstract

Context and background-Although energy constraints, green technology innovation increment, and corporate profitability are issues of central importance to enterprise management and the environment, many aspects of these elements have been neglected in the present work. Methods-Using data from listed manufacturing firms in China, this study presents two major findings. Results-First, we identify a U-shaped relationship between city-specific energy constraints and business profitability. Second, we find green technology innovation can significantly drive profitability in different types of industries. In addition, the profitability of certain enterprises, such as those that are smaller and younger can be more drastically affected by energy constraints. Conclusions and Suggestions-To develop a green innovation-driven strategy to allow manufacturing enterprises to achieve greater profitability and promote ecological improvements, we recommend energy policies be more individualized to guide "energy-constraint sensitive" enterprises to success.

Strategy for Cross-Provincial Power Transition Under Renewable Portfolio Standards and Carbon Cap

“…Another issue is the need for participants, when dealing with multi-objective tradeoffs, to consider the economic cost and benefit (Jia et al, 2022). Hoen et al (2014) reconsidered the transport mode selection decision based on low-carbon supply chains and green regulations.…”