Work

Greening your way to profits: Green strategies and green revenues

Year: 2024

Type: article

Abstract: We examine hot-debated but underexplored questions of whether and how green strategies affect corporate green revenues. Using a generalized Difference-in-Differences (DiD) framework, we find that green strategies significantly enhance corporate green revenues in the presence of China's Emission Trading Scheme (ETS) pilot. This is consistent with the Porter Hypothesis. Our mechanism analyses document that green strategies increase green revenues by improving green quality and catalyzing environmentally friendly transformation. This study has important implications for policymakers and practitioners, offering new insights into the intended consequences and real outcomes of environmental regulations.

Source: Finance research letters

DOI: 10.1016/j.frl.2024.105029

Authors: Zijie Huang, June Cao, Lei Pan

Institutions: Curtin University, Monash University

Language: English

Topic: Environmental Sustainability in Business

Subfield: Marketing

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Climate action

Open Access status: hybrid

Estimated APC paid: $3,350