Green Incentives for Chinese Listed Firms

Abstract

We study whether there is green incentive for China listed firms with energy conservation and environmental protection technology. We construct two four-factors models by introducing green factor and green efficiency factor through FF three-factors model for empirical test. The empirical results show that excess returns, namely green incentives, exist for China listed firms with energy conservation and environmental protection technology. These listed firms with different production efficiency do not have significantly different excess returns. Finally, we put forward some suggestions for the policy of the industry.