Climate policy uncertainty and firm-level total factor productivity: Evidence from China
Central South University · University of Essex · +3 more institutions
Abstract
Using 2605 Chinese A-share listed companies in the mining, manufacturing, and energy production and supply sectors from 2009 to 2020, we examine the relationship between climate policy uncertainty (CPU) and firm-level total factor productivity (TFP). The main findings are as follows: First, CPU significantly reduces firm-level TFP, with a greater impact on low-productivity firms than on high-productivity firms; second, the negative effect of CPU on firm-level TFP is most pronounced for non-state-owned, labor-intensive, and capital-intensive companies; third, CPU hinders research and development investment and reduces the amount of free cash flow. These results indicate that CPU exerts negative impacts on…
Citation impact
- FWCI
- 137.89
- Percentile
- 100%
- References
- 68
Authors
4Topics & keywords
- Total factor productivity
- Endogeneity
- Productivity
- Economics
- Robustness (evolution)
- Capital (architecture)
- Investment (military)
- Industrial organization
- Climate action