IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v14y2022i15p9604-d880447.html
   My bibliography  Save this article

Sustainable Financing Efficiency and Environmental Value in China’s Energy Conservation and Environmental Protection Industry under the Double Carbon Target

Author

Listed:
  • Baohong Li

    (School of Economics and Management, Harbin Engineering University, Harbin 150001, China
    School of Management, Harbin Normal University, Harbin 150025, China)

  • Yingdong Huo

    (School of Management, Harbin Normal University, Harbin 150025, China)

  • Shi Yin

    (College of Economics and Management, Hebei Agricultural University, Baoding 071001, China)

Abstract

Difficulty in financing and low financing efficiency is one of the bottlenecks that restrict the high-quality development of China’s energy-saving and environmental protection industry and economy. The key to improving financing efficiency is to understand its influencing factors. This paper uses data envelopment analysis (DEA) and the Malmquist index to measure the overall financing efficiency and the efficiency of different financing methods of 205 Chinese energy-saving and environmental protection industries from 2015 to 2020 from static and dynamic perspectives, respectively, as well as the Tobit model to estimate the impact of factors such as the digital transformation and green technological innovation of enterprises on financing efficiency. The study shows the following: (1) Static analysis shows that: the financing efficiency of the comprehensive technical efficiency of China’s energy conservation and environmental protection industry is less than one, 5.8% to 23.41% of enterprises have very effective comprehensive technical financing efficiency, and fewer than 9% enterprises have very effective scale efficiency levels. Enterprises may have more room for improving their financing efficiency in the future. The four types of financing are, namely, internal financing, equity financing, fiscal financing, and debt financing, in descending order of efficiency. (2) Dynamic analysis shows that the financing efficiencies of debt financing and fiscal financing are both on an upward trend, while internal and equity financing efficiencies are on a downward trend. Additionally, the technological progress change index and scale efficiency are two key factors affecting the financing efficiency of different financing methods. (3) In terms of financing methods, the comprehensive technical efficiency and scale efficiency of endogenous financing and equity financing are high, while the comprehensive technical efficiency and scale efficiency of debt financing and fiscal financing are low and flat. (4) Digital transformation, green technology innovation, the asset–liability ratio, profitability, and operational capability have a significant positive impact on the financing efficiency of energy-saving and environmental protection enterprises. This paper studies the financing efficiency of China’s energy conservation and environmental protection industry under different financing methods and the mechanism through which key factors affect the financing efficiency of enterprises. It aims to provide a theoretical basis for managing financing methods scientifically and rationally and improving the financing efficiency of the energy conservation and environmental protection industry, as well as to provide practical reference for the implementation of digital transformation, green technology innovation and diversified financing in China and other developing economies.

Suggested Citation

  • Baohong Li & Yingdong Huo & Shi Yin, 2022. "Sustainable Financing Efficiency and Environmental Value in China’s Energy Conservation and Environmental Protection Industry under the Double Carbon Target," Sustainability, MDPI, vol. 14(15), pages 1-25, August.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:15:p:9604-:d:880447
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/14/15/9604/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/14/15/9604/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ngoc T.B. Le & Thang V. Nguyen, 2009. "The Impact of Networking on Bank Financing: The Case of Small and Medium–Sized Enterprises in Vietnam," Entrepreneurship Theory and Practice, , vol. 33(4), pages 867-887, July.
    2. Stulz, ReneM., 1990. "Managerial discretion and optimal financing policies," Journal of Financial Economics, Elsevier, vol. 26(1), pages 3-27, July.
    3. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
    4. Maxime LEBOVICS & Niels HERMES & Marek HUDON, 2016. "Are Financial And Social Efficiency Mutually Exclusive? A Case Study Of Vietnamese Microfinance Institutions," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 87(1), pages 55-77, December.
    5. Myers, Stewart C. & Majluf, Nicholas S., 1984. "Corporate financing and investment decisions when firms have information that investors do not have," Journal of Financial Economics, Elsevier, vol. 13(2), pages 187-221, June.
    6. Abhiman Das & Saibal Ghosh, 2006. "Financial deregulation and efficiency: An empirical analysis of Indian banks during the post reform period," Review of Financial Economics, John Wiley & Sons, vol. 15(3), pages 193-221.
    7. Kalevi Luoma & Maija‐Liisa Järviö & Ilpo Suoniemi & Reino T. Hjerppe, 1996. "Financial incentives and productive efficiency in Finnish health centres," Health Economics, John Wiley & Sons, Ltd., vol. 5(5), pages 435-445, September.
    8. Stewart C. Myers & Nicholas S. Majluf, 1984. "Corporate Financing and Investment Decisions When Firms Have InformationThat Investors Do Not Have," NBER Working Papers 1396, National Bureau of Economic Research, Inc.
    9. Nelson Amowine & Zhiqiang Ma & Mingxing Li & Zhixiang Zhou & Benjamin Azembila Asunka & James Amowine, 2019. "Energy Efficiency Improvement Assessment in Africa: An Integrated Dynamic DEA Approach," Energies, MDPI, vol. 12(20), pages 1-17, October.
    10. Carla Alexandra Filipe Amado & Ana Paula Barreira & Sérgio Pereira Santos & Maria Helena Guimarães, 2019. "Comparing the quality of life of cities that gained and lost population: An assessment with DEA and the Malmquist index," Papers in Regional Science, Wiley Blackwell, vol. 98(5), pages 2075-2097, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Peiwen Wang & Yan Lin & Zhiping Wang, 2022. "An Integrated Decision-Making Model Based on Plithogenic-Neutrosophic Rough Number for Sustainable Financing Enterprise Selection," Sustainability, MDPI, vol. 14(19), pages 1-23, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Khémiri, Wafa & Noubbigh, Hédi, 2020. "Size-threshold effect in debt-firm performance nexus in the sub-Saharan region: A Panel Smooth Transition Regression approach," The Quarterly Review of Economics and Finance, Elsevier, vol. 76(C), pages 335-344.
    2. Koh, SzeKee & Durand, Robert B. & Watson, Iain, 2011. "Seize the moment: Opportunism in Australian capital markets," Pacific-Basin Finance Journal, Elsevier, vol. 19(4), pages 374-389, September.
    3. Xin Qu & Majella Percy & Fang Hu & Jenny Stewart, 2022. "Can CEO equity‐based compensation limit investment‐related agency problems?," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 62(2), pages 2579-2614, June.
    4. Kim, Sang-Joon & Bae, John & Oh, Hannah, 2019. "Financing strategically: The moderation effect of marketing activities on the bifurcated relationship between debt level and firm valuation of small and medium enterprises," The North American Journal of Economics and Finance, Elsevier, vol. 48(C), pages 663-681.
    5. Z. Jun Lin & Shengqiang Liu & Fangcheng Sun, 2017. "The Impact of Financing Constraints and Agency Costs on Corporate R&D Investment: Evidence from China," International Review of Finance, International Review of Finance Ltd., vol. 17(1), pages 3-42, March.
    6. Bae, John & Kim, Sang-Joon & Oh, Hannah, 2017. "Taming polysemous signals: The role of marketing intensity on the relationship between financial leverage and firm performance," Review of Financial Economics, Elsevier, vol. 33(C), pages 29-40.
    7. Anoshkina, Ekaterina S. (Аношкина, Екатерина) & Markovskaya, Elizaveta I. (Марковская, Елизавета), 2018. "Empirical Analysis of Capital Structure Determinants of Russian Oil and Gas Companies [Анализ Структуры Капитала Российских Компаний Нефтегазового Сектора]," Ekonomicheskaya Politika / Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 5, pages 80-109, October.
    8. Zaheer Anwer & Shamsher Mohamad & Wajahat Azmi & Akram Shavkatovich Hasanov, 2022. "Product market fluidity and religious constraints: evidence from the US market," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 62(S1), pages 1761-1817, April.
    9. Aybar, Bülent & Thanakijsombat, Thanarerk, 2015. "Financing decisions and gains from cross-border acquisitions by emerging-market acquirers," Emerging Markets Review, Elsevier, vol. 24(C), pages 69-80.
    10. Sai Ding & Alessandra Guariglia & John Knight & Junhong Yang, 2021. "Negative Investment in China: Financing Constraints and Restructuring versus Growth," Economic Development and Cultural Change, University of Chicago Press, vol. 69(4), pages 1411-1449.
    11. Opler, Tim & Pinkowitz, Lee & Stulz, Rene & Williamson, Rohan, 1999. "The determinants and implications of corporate cash holdings," Journal of Financial Economics, Elsevier, vol. 52(1), pages 3-46, April.
    12. Mazumder, Sharif & Rao, Ramesh, 2023. "Social trust and the choice between bank debt and public debt: Evidence from international data," Journal of Multinational Financial Management, Elsevier, vol. 67(C).
    13. Wiwattanakantang, Yupana, 1999. "An empirical study on the determinants of the capital structure of Thai firms," Pacific-Basin Finance Journal, Elsevier, vol. 7(3-4), pages 371-403, August.
    14. Gérard Gaudet & Pierre Lasserre & Ngo Van Long, 1995. "Real Investment Decisions Under Information Constraints," CIRANO Working Papers 95s-33, CIRANO.
    15. Imran Yousaf & Arshad Hassan, 2016. "Effect of Family Control on Corporate Financing Decisions: A Case of Pakistan," PIDE-Working Papers 2016:138, Pakistan Institute of Development Economics.
    16. He Xiao, 2023. "Institutional investors' corporate site visits and corporate investment efficiency," International Review of Finance, International Review of Finance Ltd., vol. 23(2), pages 359-392, June.
    17. Cai, Weixing & Hu, Feng & Xu, Fangming & Zheng, Liyi, 2022. "Anti-corruption campaign and corporate cash holdings: Evidence from China," Emerging Markets Review, Elsevier, vol. 51(PA).
    18. Sang-Lyul Ryu & Jayoun Won, 2022. "The Value Relevance of Operational Innovation: Insights from the Perspective of Firm Life Cycle," Sustainability, MDPI, vol. 14(4), pages 1-18, February.
    19. Viral V. Acharya & Hamid Mehran & Anjan V. Thakor, 2016. "Caught between Scylla and Charybdis? Regulating Bank Leverage When There Is Rent Seeking and Risk Shifting," The Review of Corporate Finance Studies, Society for Financial Studies, vol. 5(1), pages 36-75.
    20. Praveen Kumar & Nisan Langberg & K. Sivaramakrishnan, 2012. "Voluntary Disclosures, Corporate Control, and Investment," Journal of Accounting Research, Wiley Blackwell, vol. 50(4), pages 1041-1076, September.

    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:gam:jsusta:v:14:y:2022:i:15:p:9604-:d:880447. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.