Title: The impact of climate change on the entry of newly registered enterprises

Authors: Yanyun Chen; XiangYu Liu; Jingting Tu; Kun Liao

Addresses: Institute of Economic and Social Development, Jiangxi University of Finance and Economics, Nanchang, Jiangxi, 330013, China ' Institute of Economic and Social Development, Jiangxi University of Finance and Economics, Nanchang, Jiangxi, 330013, China ' School of Public Policy and Management, Nanchang University, Nanchang, Jiangxi, 330031, China ' Department of Finance and Supply Chain Management, College of Business, Central Washington University-Lynnwood, 20000 68th Avenue West, Lynnwood, WA, 98036, USA

Abstract: Climate change is one of the most pressing issues confronting the economy and society today. This research explores the mechanism of climate change on firm entry behaviour based on Chinese municipal equilibrium panel data from 2009 to 2019. The empirical results are as follows: 1) The climate change significantly limits firm entry behaviour, i.e., the more extreme temperature days, the lower the firm entrance; 2) labour supply, human capital, or consumer demand are significant mediators of how climate change influences firm entrance; and 3) at the regional level, there are significant disparities in the entry of firms on the east and west sides of the 'Hu Line' as a result of climate change, indicating that climate change promotes the entry of enterprises on the west side of the 'Hu Line' while negatively inhibiting the entry of enterprises on the east side of the 'Hu Line'.

Keywords: climate change; extreme temperature; firm entry; the Hu Line; micro-breakthrough; the second geographical nature.

DOI: 10.1504/IJTPM.2024.143520

International Journal of Technology, Policy and Management, 2024 Vol.24 No.4, pp.392 - 416

Received: 02 Sep 2023
Accepted: 09 Jan 2024
Published online: 30 Dec 2024 *

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