IDEAS home Printed from https://ideas.repec.org/a/eee/finlet/v61y2024ics154461232400059x.html
   My bibliography  Save this article

Greening your way to profits: Green strategies and green revenues

Author

Listed:
  • Huang, Zijie
  • Cao, June
  • Pan, Lei

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.

Suggested Citation

  • Huang, Zijie & Cao, June & Pan, Lei, 2024. "Greening your way to profits: Green strategies and green revenues," Finance Research Letters, Elsevier, vol. 61(C).
    • Handle: RePEc:eee:finlet:v:61:y:2024:i:c:s154461232400059x
    DOI: 10.1016/j.frl.2024.105029
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S154461232400059X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.frl.2024.105029?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    Green revenues; Green strategies; Green quality; Environmentally friendly transformation;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
    • M48 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Government Policy and Regulation
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:finlet:v:61:y:2024:i:c:s154461232400059x. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/frl .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.