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How does climate risk impact green total factor productivity? A greening and digital synergy perspective

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  • Sun, Yufei
  • Liu, Zhixiong

Abstract

Climate risk (CR) has become a significant global challenge. This study explores how CR affects green total factor productivity (GTFP) in A-share listed firms in China from 2007 to 2022. A two-way fixed effects model is used, with green finance (GFin) as a mediator and digital transformation (DT) as a moderator, to explore the synergistic effects of green initiatives and digitization. The findings show that CR positively influences GTFP. Mechanism analysis shows that GFin mediates the relationship between CR and GTFP improvements, while DT amplifies this effect. This effect is notable in non-heavy-pollution industries, state-owned firms, and the eastern region.

Suggested Citation

  • Sun, Yufei & Liu, Zhixiong, 2025. "How does climate risk impact green total factor productivity? A greening and digital synergy perspective," Finance Research Letters, Elsevier, vol. 85(PD).
    • Handle: RePEc:eee:finlet:v:85:y:2025:i:pd:s1544612325014606
    DOI: 10.1016/j.frl.2025.108205
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