Can Green Technology Innovation Reduce the Operational Risks of Energy-Intensive Enterprises?

Abstract

Many countries have adopted carbon regulatory policies in pursuit of carbon neutrality, which pose great transition risks for energy-intensive sectors. Using the panel data of 186 Chinese listed enterprises in the energy-intensive sector from 2007 to 2019, this study investigates the impact of green technology innovation on corporate operation risks. Empirical evidence shows that energy-intensive enterprises can effectively reduce their operational risks by participating in green technology innovation activities. This study also proves the mechanism of obtaining the support of public policies and enhancing investor confidence in the capital market, while the mechanism of improving recognition in the consumer market is insignificant. Climate policy uncertainty weakens the stabilizing effect of green technology innovation on operational risks. In addition, green technology innovation has a weak stabilizing effect on the operational risks of state-owned enterprises, while government subsidy can strengthen the stabilizing effect. Finally, the stabilizing effect of green technology innovation on operational risks varies by region, period, scale and ownership. This study and its findings provide theoretical insights for corporate risk management in energy-intensive industries and theoretical analysis for the realization mechanism of the market value of corporate green behavior.