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Climate governance actions, financing constraints, and green transformation of energy-intensive firms

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  • Fan, Min
  • Shira, Ruba Khalid
  • Hunjra, Ahmed Imran
  • Zhao, Shikuan

Abstract

Climate governance actions are of great significance in promoting energy transition. We analyze impact of climate governance actions on green transformation of energy-intensive enterprises by using a double difference model. We find that green transformation of energy-intensive enterprises is significantly enhanced after implementation of the climate-adaptive city building pilot. Mechanism analysis shows that climate governance actions can promote green transformation by reducing financing constraints, mitigating supply chain risks and enhancing supply chain resilience. In addition, lower energy consumption intensity of enterprises located in non-resource cities or non-old industrial base cities, more significant effect of climate governance actions on green transformation of energy-intensive enterprises. Our paper contributes to climate policy and energy transition of energy-intensive enterprises in context of green transition.

Suggested Citation

  • Fan, Min & Shira, Ruba Khalid & Hunjra, Ahmed Imran & Zhao, Shikuan, 2025. "Climate governance actions, financing constraints, and green transformation of energy-intensive firms," Research in International Business and Finance, Elsevier, vol. 79(C).
    • Handle: RePEc:eee:riibaf:v:79:y:2025:i:c:s0275531925002971
    DOI: 10.1016/j.ribaf.2025.103041
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    1. Wang, Miao & Wang, Yiduo & Feng, Chao, 2025. "Artificial intelligence, institutional environment, and corporate green transformation: Evidence from China's resource-based sector," International Review of Economics & Finance, Elsevier, vol. 103(C).

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