How does the new energy demonstration city pilot policy affect energy-intensive enterprises’ ESG? A quasi-natural experiment from China
The new energy demonstration city (NEDC) pilot policy is an important attempt of the government to promote the energy system transition and further advance China's sustainable society development. The main focus of the NEDC is energy-intensive enterprises, however, the policy effect on these en...
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Elsevier
2025-06-01
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| Series: | Sustainable Futures |
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| Online Access: | http://www.sciencedirect.com/science/article/pii/S2666188824002740 |
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| author | Huan Zheng Jinqiu Yang Shengyu Xu |
| author_facet | Huan Zheng Jinqiu Yang Shengyu Xu |
| author_sort | Huan Zheng |
| collection | DOAJ |
| description | The new energy demonstration city (NEDC) pilot policy is an important attempt of the government to promote the energy system transition and further advance China's sustainable society development. The main focus of the NEDC is energy-intensive enterprises, however, the policy effect on these enterprises’ environmental, social, and governance (ESG) is still underdiscussed. This study uses a panel data of Chinese listed energy-intensive enterprises during 2009–2022 and a difference-in-differences model to examine whether the NEDC boosts corporate ESG. The findings indicate that the NEDC can effectively improve the ESG of energy-intensive enterprises, and this result remains robust following various tests. We also decompose ESG into three sub-factors, i.e., environmental (E), social (S) and governance (G), revealing the NEDC's promotional influence on S and G. Our quantile analysis shows a more significant enhancing effect of the NEDC on enterprises with lower ESG than on those with higher ESG. The mechanism analysis reveals that the NEDC affects enterprises’ ESG through technological innovation, confirming the Porter hypothesis in China. Finally, our research confirms that the promotional effect of the NEDC on enterprises’ ESG is notably reflected for non-state-owned enterprises and enterprises in the eastern area. These findings suggest that the Chinese government should adhere to implementing the NEDC in the long term, promote technological innovation, and adjust this policy appropriately, so as to make the policy effect longer and broader, and finally achieve sustainable development goals. |
| format | Article |
| id | doaj-art-b0de70caecfd46b29e9c68758dd96fd3 |
| institution | Kabale University |
| issn | 2666-1888 |
| language | English |
| publishDate | 2025-06-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Sustainable Futures |
| spelling | doaj-art-b0de70caecfd46b29e9c68758dd96fd32024-12-28T05:22:51ZengElsevierSustainable Futures2666-18882025-06-019100426How does the new energy demonstration city pilot policy affect energy-intensive enterprises’ ESG? A quasi-natural experiment from ChinaHuan Zheng0Jinqiu Yang1Shengyu Xu2School of Economics and Management, Chongqing Jiaotong University. 66 Xuefu Road, Nan'an District, Chongqing, 400074, ChinaCorresponding author.; School of Economics and Management, Chongqing Jiaotong University. 66 Xuefu Road, Nan'an District, Chongqing, 400074, ChinaSchool of Economics and Management, Chongqing Jiaotong University. 66 Xuefu Road, Nan'an District, Chongqing, 400074, ChinaThe new energy demonstration city (NEDC) pilot policy is an important attempt of the government to promote the energy system transition and further advance China's sustainable society development. The main focus of the NEDC is energy-intensive enterprises, however, the policy effect on these enterprises’ environmental, social, and governance (ESG) is still underdiscussed. This study uses a panel data of Chinese listed energy-intensive enterprises during 2009–2022 and a difference-in-differences model to examine whether the NEDC boosts corporate ESG. The findings indicate that the NEDC can effectively improve the ESG of energy-intensive enterprises, and this result remains robust following various tests. We also decompose ESG into three sub-factors, i.e., environmental (E), social (S) and governance (G), revealing the NEDC's promotional influence on S and G. Our quantile analysis shows a more significant enhancing effect of the NEDC on enterprises with lower ESG than on those with higher ESG. The mechanism analysis reveals that the NEDC affects enterprises’ ESG through technological innovation, confirming the Porter hypothesis in China. Finally, our research confirms that the promotional effect of the NEDC on enterprises’ ESG is notably reflected for non-state-owned enterprises and enterprises in the eastern area. These findings suggest that the Chinese government should adhere to implementing the NEDC in the long term, promote technological innovation, and adjust this policy appropriately, so as to make the policy effect longer and broader, and finally achieve sustainable development goals.http://www.sciencedirect.com/science/article/pii/S2666188824002740Environmental, social, and governanceNew energy demonstration city pilot policyDifference-in-differences modelEnergy-intensive enterprisesTechnological innovation |
| spellingShingle | Huan Zheng Jinqiu Yang Shengyu Xu How does the new energy demonstration city pilot policy affect energy-intensive enterprises’ ESG? A quasi-natural experiment from China Sustainable Futures Environmental, social, and governance New energy demonstration city pilot policy Difference-in-differences model Energy-intensive enterprises Technological innovation |
| title | How does the new energy demonstration city pilot policy affect energy-intensive enterprises’ ESG? A quasi-natural experiment from China |
| title_full | How does the new energy demonstration city pilot policy affect energy-intensive enterprises’ ESG? A quasi-natural experiment from China |
| title_fullStr | How does the new energy demonstration city pilot policy affect energy-intensive enterprises’ ESG? A quasi-natural experiment from China |
| title_full_unstemmed | How does the new energy demonstration city pilot policy affect energy-intensive enterprises’ ESG? A quasi-natural experiment from China |
| title_short | How does the new energy demonstration city pilot policy affect energy-intensive enterprises’ ESG? A quasi-natural experiment from China |
| title_sort | how does the new energy demonstration city pilot policy affect energy intensive enterprises esg a quasi natural experiment from china |
| topic | Environmental, social, and governance New energy demonstration city pilot policy Difference-in-differences model Energy-intensive enterprises Technological innovation |
| url | http://www.sciencedirect.com/science/article/pii/S2666188824002740 |
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