| Title | Do green investments improve firm performance? Empirical evidence from Ireland |
|---|---|
| ID_Doc | 19272 |
| Authors | Siedschlag, I; Yan, WJ |
| Title | Do green investments improve firm performance? Empirical evidence from Ireland |
| Year | 2023 |
| Published | |
| Abstract | International evidence suggests that the transition to a more sustainable development requires firms' investments aimed at improving environmental quality. However, existing evidence on how such green investments affect firm performance is inconclusive. To help address this evidence gap, this paper examines the impact of firms' green investments on a range of their performance outcomes, including the growth of output, employment, productivity, export intensity, and energy intensity. The analysis uses firm-level data from Ireland's industry sector over the period of 2008-2016. To identify causal effects, a difference-in-difference propensity score matching is used. In addition to average effects across all firms, we also explore and quantify heterogenous effects of such investments, taking industry and firm heterogeneity into consideration. Our results indicate that, on average, in the medium-term, green investments have positive effects on firms' performance. Taking into account firm heterogeneity, we find that the effects are stronger for firms which are larger, foreign-owned, more productive, and in low-tech industries. This evidence suggests that environmental quality linked to green in-vestments and firm performance can go together, although not all firms benefit equally from green investments. |
Similar Articles
| ID | Score | Article |
|---|---|---|
19721
|
Siedschlag, I; Yan, WJ Firms' green investments: What factors matter?(2021) | |
| 35663
|
Amendolagine, V; Lema, R; Rabellotti, R Green foreign direct investments and the deepening of capabilities for sustainable innovation in multinationals: Insights from renewable energy(2021) | |
| 35245
|
Li, F; Li, J; Wang, DK Policy instruments and green innovation: Evidence and implications for corporate performance(2024) | |
| 30532
|
Li, Z; He, LY; Zhong, ZQ; Xia, YF Financial-industrial integration, green technology innovation, and enterprise's green development performance: an empirical analysis of 625 listed industrial enterprises of China(2024)Environment Development And Sustainability, 26, 2 | |
| 63462
|
Soto, GH Filter-out hypothesis: Can outward flows of foreign direct investment contribute to a cleaner productive system in the European Union?(2024) | |
| 75686
|
Khan, PA; Johl, SK; Akhtar, S Firm Sustainable Development Goals and Firm Financial Performance through the Lens of Green Innovation Practices and Reporting: A Proactive Approach(2021)Journal Of Risk And Financial Management, 14, 12 | |
| 35324
|
Garcia-Quevedo, J; Martinez-Ros, E; Tchorzewska, KB End-of-pipe and cleaner production technologies. Do policy instruments and organizational capabilities matter? Evidence from Spanish firms(2022) | |
| 35266
|
Riehl, K; Kiesel, F; Schiereck, D Political and Socioeconomic Factors That Determine the Financial Outcome of Successful Green Innovation(2022)Sustainability, 14, 6 |