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Role of sustainability ethics in amplifying investments in common green properties and infrastructure in China

Author

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  • Jiaguo Peng

    (Huangshan University)

  • Lifei Huang

    (Zhijiang College of Zhejiang University of Technology)

  • Jian Xu

    (South China University of Technology)

Abstract

This study explores the dynamic interrelation between environmental, social, and governance (ESG) investments, representing the ethical sustainability of enterprises, and green power investments, serving as a proxy for common sustainable infrastructure investment in China spanning from 1995 to 2021. Empirical findings strongly support the assertion of positive short-term and long-term influences of ESG investing on green power investment. A 1% uptick in ESG investing is associated with a notable 0.55 and 0.70% increase in short-term and long-term green power investment, respectively. Factors contributing to this phenomenon include an increased emphasis on environmentally responsible practices, prompting businesses to adopt cleaner energy solutions and attracting capital to green power initiatives. The positive coefficients for green components imports and the development of internet access underscore the favorable impacts on green power investment, highlighting the influential role of information dissemination. Conversely, adverse effects stemming from carbon footprint, foreign direct investment, and economic size reveal a nuanced interplay of factors. The study emphasizes the pivotal role of sustainability ethics and suggests practical policies to incentivize ESG integration, enhance transparency, and foster collaborations for sustainable infrastructure development in China.

Suggested Citation

  • Jiaguo Peng & Lifei Huang & Jian Xu, 2024. "Role of sustainability ethics in amplifying investments in common green properties and infrastructure in China," Economic Change and Restructuring, Springer, vol. 57(3), pages 1-17, June.
    • Handle: RePEc:kap:ecopln:v:57:y:2024:i:3:d:10.1007_s10644-024-09674-1
    DOI: 10.1007/s10644-024-09674-1
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    References listed on IDEAS

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    More about this item

    Keywords

    Sustainability ethics; Green investment; Sustainable power generation; ESG investing; China;
    All these keywords.

    JEL classification:

    • 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
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • P20 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - General

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