IDEAS home Printed from https://ideas.repec.org/a/eee/jrpoli/v69y2020ics0301420720308606.html
   My bibliography  Save this article

The impacts of climate change risks on financial performance of mining industry: Evidence from listed companies in China

Author

Listed:
  • Sun, Yongping
  • Yang, Ying
  • Huang, Nan
  • Zou, Xin

Abstract

The mining industry is susceptible to climate change risks since it has the characteristics of high exposure, high sensitivity and high substitution. Firstly, this paper reviews the impact mechanism of climate change risks on corporate financial performance from direct and indirect channels. Secondly, this paper employs the unique data, climate risk indicator with 5 types of climate risks, to analyze the effect of climate change risks on the China's mineral listed companies. The empirical analysis shows that there is a correlation between climate change and financial performance of mining companies. The mining companies with different types of resource have different sensitivities to climate change risks. The climate change risks have both positive and negative effects on the financial performance of mining companies. In respond to the climate change risks, mining companies should actively implement low-carbon strategies and proactively disclose emission information to improve the brand value and create new competitive advantages for long-term development.

Suggested Citation

  • Sun, Yongping & Yang, Ying & Huang, Nan & Zou, Xin, 2020. "The impacts of climate change risks on financial performance of mining industry: Evidence from listed companies in China," Resources Policy, Elsevier, vol. 69(C).
  • Handle: RePEc:eee:jrpoli:v:69:y:2020:i:c:s0301420720308606
    DOI: 10.1016/j.resourpol.2020.101828
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301420720308606
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.resourpol.2020.101828?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.

    References listed on IDEAS

    as
    1. Olivier Deschênes & Michael Greenstone, 2011. "Climate Change, Mortality, and Adaptation: Evidence from Annual Fluctuations in Weather in the US," American Economic Journal: Applied Economics, American Economic Association, vol. 3(4), pages 152-185, October.
    2. Cheng, Dong & Shi, Xunpeng & Yu, Jian & Zhang, Dayong, 2019. "How does the Chinese economy react to uncertainty in international crude oil prices?," International Review of Economics & Finance, Elsevier, vol. 64(C), pages 147-164.
    3. Chan, Hei Sing (Ron) & Li, Shanjun & Zhang, Fan, 2013. "Firm competitiveness and the European Union emissions trading scheme," Energy Policy, Elsevier, vol. 63(C), pages 1056-1064.
    4. Melissa Dell & Benjamin F. Jones & Benjamin A. Olken, 2014. "What Do We Learn from the Weather? The New Climate-Economy Literature," Journal of Economic Literature, American Economic Association, vol. 52(3), pages 740-798, September.
    5. Wu, Haitao & Xu, Lina & Ren, Siyu & Hao, Yu & Yan, Guoyao, 2020. "How do energy consumption and environmental regulation affect carbon emissions in China? New evidence from a dynamic threshold panel model," Resources Policy, Elsevier, vol. 67(C).
    6. Melissa Dell & Benjamin F. Jones & Benjamin A. Olken, 2012. "Temperature Shocks and Economic Growth: Evidence from the Last Half Century," American Economic Journal: Macroeconomics, American Economic Association, vol. 4(3), pages 66-95, July.
    Full references (including those not matched with items on IDEAS)

    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. Hsing-Hsiang Huang & Michael R. Moore, 2018. "Farming under Weather Risk: Adaptation, Moral Hazard, and Selection on Moral Hazard," NBER Chapters, in: Agricultural Productivity and Producer Behavior, pages 77-124, National Bureau of Economic Research, Inc.
    2. Joshua Graff Zivin & Solomon M. Hsiang & Matthew Neidell, 2018. "Temperature and Human Capital in the Short and Long Run," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 5(1), pages 77-105.
    3. François Cohen & Matthieu Glachant & Magnus Söderberg, 2017. "The cost of adapting to climate change: evidence from the US residential sector," Working Papers hal-01695171, HAL.
    4. Emediegwu, Lotanna E. & Wossink, Ada & Hall, Alastair, 2022. "The impacts of climate change on agriculture in sub-Saharan Africa: A spatial panel data approach," World Development, Elsevier, vol. 158(C).
    5. Graff Zivin, Joshua & Song, Yingquan & Tang, Qu & Zhang, Peng, 2020. "Temperature and high-stakes cognitive performance: Evidence from the national college entrance examination in China," Journal of Environmental Economics and Management, Elsevier, vol. 104(C).
    6. Picchio, Matteo & van Ours, Jan C., 2024. "The impact of high temperatures on performance in work-related activities," Labour Economics, Elsevier, vol. 87(C).
    7. Johannes Gallé & Anja Katzenberger, 2025. "Indian Agriculture Under Climate Change: The Competing Effect of Temperature and Rainfall Anomalies," Economics of Disasters and Climate Change, Springer, vol. 9(1), pages 53-105, March.
    8. Letta, Marco & Montalbano, Pierluigi & Tol, Richard S.J., 2018. "Temperature shocks, short-term growth and poverty thresholds: Evidence from rural Tanzania," World Development, Elsevier, vol. 112(C), pages 13-32.
    9. David Castells-Quintana & Maria del Pilar Lopez-Uribe & Tom McDermott, 2015. "Climate change and the geographical and institutional drivers of economic development," GRI Working Papers 198, Grantham Research Institute on Climate Change and the Environment.
    10. Gagliardi, Nicola & Grinza, Elena & Rycx, François, 2024. "The Productivity Impact of Global Warming: Firm-Level Evidence for Europe," GLO Discussion Paper Series 1485, Global Labor Organization (GLO).
    11. Mumtaz, Haroon & Theophilopoulou, Angeliki, 2024. "The distributional effects of climate change. An empirical analysis," European Economic Review, Elsevier, vol. 169(C).
    12. Hua Liao & Chen Zhang & Paul J. Burke & Ru Li & Yi‐Ming Wei, 2023. "Extreme temperatures, mortality, and adaptation: Evidence from the county level in China," Health Economics, John Wiley & Sons, Ltd., vol. 32(4), pages 953-969, April.
    13. Lopez-Uribe, Maria del Pilar & Castells-Quintana, David & McDermott, Thomas K. J., 2017. "Geography, institutions and development: a review ofthe long-run impacts of climate change," LSE Research Online Documents on Economics 65147, London School of Economics and Political Science, LSE Library.
    14. Tamma Carleton & Michael Greenstone, 2021. "Updating the United States Government's Social Cost of Carbon," Working Papers 2021-04, Becker Friedman Institute for Research In Economics.
    15. Juliano Assunção & Flávia Chein & Giovanni Leo Frisari & Sérgio Mikio Koyama, 2023. "Another Boiling Frog: the impact of climate-related events on financial outcomes in Brazil," Working Papers Series 572, Central Bank of Brazil, Research Department.
    16. Adrien Bilal & James H. Stock, 2025. "Macroeconomics and Climate Change," NBER Working Papers 33567, National Bureau of Economic Research, Inc.
    17. Mathieu Lefebvre & Pierre Pestieau & Gregory Ponthiere, 2024. "Missing Poor in the U.S," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 22(4), pages 865-891, December.
    18. Bento, Antonio M. & Miller, Noah & Mookerjee, Mehreen & Severnini, Edson, 2023. "A unifying approach to measuring climate change impacts and adaptation," Journal of Environmental Economics and Management, Elsevier, vol. 121(C).
    19. Bui, Thanh-Huong & Bui, Ha-Phuong & Pham, Thi Mai-Anh, 2024. "Effects of temperature on job insecurity: Evidence from Australia," Economic Analysis and Policy, Elsevier, vol. 82(C), pages 264-276.
    20. Guimbeau, Amanda & Ji, Xinde James & Long, Zi & Menon, Nidhiya, 2024. "Ocean salinity, early-life health, and adaptation," Journal of Environmental Economics and Management, Elsevier, vol. 125(C).

    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:jrpoli:v:69:y:2020:i:c:s0301420720308606. 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/30467 .

    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.