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Adopting environmental sustainability: the financial consequences of clean energy and technology acceptance in the energy transition

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  • Xiaorun Wang

    (Hefei University of Technology
    Anhui Agriculture University)

  • Qiong Cao

    (Hefei University of Technology)

Abstract

This study addresses the critical issue of environmental sustainability in the context of the energy transition, specifically focusing on the financial consequences of adopting clean energy and technology in China from 1990 to 2022. The primary aim is to assess the economic impact of clean energy and technology acceptance among Chinese firms and industries during this period of significant environmental policy shifts and technological advancements. The objective is to understand how the transition toward cleaner energy sources and technologies affects financial performance and market competitiveness of companies in the Chinese context. Utilizing a comprehensive dataset spanning over three decades, the study reveals that firms which proactively adopt clean energy and sustainable technologies tend to experience positive financial outcomes, including improved profitability, market share, and long-term sustainability. The results underscore the importance of strategic investments in clean technology as a pivotal factor in financial performance during the energy transition. Policy implications suggest that supportive frameworks and incentives for clean energy adoption can significantly enhance the financial viability and sustainability of firms, contributing to the broader goals of environmental sustainability and economic resilience in China.

Suggested Citation

  • Xiaorun Wang & Qiong Cao, 2024. "Adopting environmental sustainability: the financial consequences of clean energy and technology acceptance in the energy transition," Economic Change and Restructuring, Springer, vol. 57(3), pages 1-16, June.
    • Handle: RePEc:kap:ecopln:v:57:y:2024:i:3:d:10.1007_s10644-024-09697-8
    DOI: 10.1007/s10644-024-09697-8
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    References listed on IDEAS

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