| Abstract |
This paper seeks to evaluate how intellectual property (IP) influences the sustainable performance of Chinese companies involved in fossil fuel exploration and production. The study meticulously delineates specific variables aimed at advancing sustainability through strategic IP measures. Utilizing data spanning from 2010 to 2021 and employing the Cross-Sectionally Augmented Autoregressive Distributed Lag (CS-ARDL) approach, we reveal a nuanced relationship between innovation efficiency and energy costs. A mere 1% improvement in innovation efficiency corresponds to a 0.6% short-term and 0.4% long-term reduction in energy costs. Larger workforces contribute to increased energy consumption, investments drive energy-intensive processes, and profitability accelerates production, amplifying energy demands. Additionally, we uncover the adverse impact of Information and Communication Technology (ICT) expenses on energy costs, emphasizing the transformative potential of digitalization. To enhance sustainability, we recommend strengthening IP strategies, providing incentives for the commercialization of green patents, leveraging green financing, and adopting Environmental, Social, and Governance (ESG) principles to attract ethical investors. Equipping a skilled workforce through training programs facilitates the integration of eco-friendly technologies with intellectual property strategies. |
