Conference Programme
Overview and details of the sessions of this conference. Please select a date or location to show only sessions at that day or location. Please select a single session for detailed view (with abstracts and downloads if available). Note that the schedule is subject to changes.
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Daily Overview |
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Research Sketches 3: Investing in Green Transition Location: Auditorium (Level 1) Session Chair: Jeffrey York, University of Colorado Boulder | |
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Financing the Green Transition of "Brown" Sectors 1: Lee Kong Chian School of Business, Singapore Management University, Singapore; 2: Department of Finance and Cooperative Management, National Taipei University, New Taipei, Taiwan; 3: Institute of Finance and Economics, Central University of Finance and Economics, Beijing, China; 4: International Institute of Green Finance, Central University of Finance and Economics, Beijing, China; 5: Business School, Shanghai Dianji University, Shanghai, China We examine whether cheaper financing conditions facilitate firms' transition away from carbon-intensive activities and toward sustainable ones, measured by the share of revenue from green activities ("green revenue"). Using a novel revenue-decomposition dataset for Chinese listed firms, we find that lower costs of debt are associated with a higher green-revenue share, with effects concentrated in high-emission (brown) sectors. The association is stronger for smaller firms and for firms with richer ex-ante green technologies. Exploiting policy-induced reductions in borrowing costs, we document a plausibly causal effect of cheaper debt on increases in green revenue. We corroborate these patterns in a global sample. Taken together, the results indicate that financing the transition of brown sectors—by lowering the marginal cost of capital for credible investments—can materially accelerate corporate decarbonization. We discuss implications for emerging transition-finance frameworks. | |