Work

The impact of climate vulnerability on new firm formation

Year: 2024

Type: article

Abstract: The aim of the paper is to examine the influence of climate vulnerability (CV) on the formation of new firms. Employing a large sample of 140 countries spanning the time frame 2006–2020, it has been found that climate vulnerability harms new firm formation. The empirical results show that the negative impact of CV on the average new business formation rate has been 3.40. The results prove to be robust for alternative subsamples and methodology. Furthermore, the results of the quantile regression highlight a parameter heterogeneity in the effect of CV on entrepreneurial activity. Overall, the empirical findings highlight the key role of climate vulnerabilities in developing public policies aimed to spur entrepreneurial activity.

Source: Business Strategy & Development

DOI: 10.1002/bsd2.406

Author: Sorin Gabriel Anton

Institution: Alexandru Ioan Cuza University

Language: English

Topic: Entrepreneurship Studies and Influences

Subfield: Management of Technology and Innovation

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Climate action, Decent work and economic growth, Industry, innovation and infrastructure

Open Access status: hybrid

Estimated APC paid: $3,090