Title: Assessing the effectiveness of energy transition policies on corporate ESG performance: insights from China's NEDC initiative

Authors: Xue Lei

Addresses: School of Management, Shanghai University, Shanghai, 200444, China

Abstract: Amidst the growing concerns over global climate change and the urgency for sustainable development, this study investigates the role of government-driven energy transition policies in improving corporate environmental, social and governance (ESG) performance. Utilising China's New Energy Demonstration City (NEDC) Policy as a quasi-natural experiment, this research applies a difference-in-differences approach to evaluate the policy's impact. The findings indicate a significant positive effect on corporate ESG performance, particularly for larger enterprises and those operating in low-carbon industries. The study underscores the importance of nuanced policy guidance from local governments to facilitate a sustainable energy transition and enhance corporate development, while also highlighting the ongoing challenges for small and high-carbon industry enterprises. This research contributes to the broader discourse on the efficacy of energy transition policies in fostering corporate sustainability and aligning with global efforts to address the repercussions of climate change.

Keywords: energy transition policies; corporate ESG performance; new energy demonstration cities; sustainable development; policy impact; China.

DOI: 10.1504/IJGW.2024.142862

International Journal of Global Warming, 2024 Vol.34 No.4, pp.291 - 299

Received: 02 Apr 2024
Accepted: 06 May 2024
Published online: 28 Nov 2024 *

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