Business

Poison or catalyst? How do energy saving targets matter for firm-level productivity in China

P. Zhang, A. Zhang, et al.

This study conducted by Pan Zhang, Acheng Zhang, and Zitao Chen explores how energy-saving targets from China's Top-10000 Enterprises Program influence firm-level total factor productivity. Discover the intriguing inverted-U relationship between these targets and productivity, and how appropriate target setting can yield environmental and economic benefits.

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Playback language: English

Index

Abstract

This study investigates the impact of energy-saving targets set by China's Top-10000 Enterprises Energy Conservation and Low Carbon Program on firm-level total factor productivity (TFP). Using panel data from 2012-2013, the study reveals an inverted-U-shaped relationship between energy-saving targets and manufacturers' TFP. The targets are shown to boost TFP by expanding market share, with effects varying by region, enterprise type, and industry. Appropriate target setting is posited as a method for environmental improvement and productivity enhancement.

Publisher

HUMANITIES AND SOCIAL SCIENCES COMMUNICATIONS

Published On

Mar 19, 2024

Authors

Pan Zhang, Acheng Zhang, Zitao Chen

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