Cookies?
Library Header Image
LSE Research Online LSE Library Services

Managerial and financial barriers during the green transition

De Haas, Ralph, Martin, Ralf, Muûls, Mirabelle and Schweiger, Helena (2022) Managerial and financial barriers during the green transition. CEP Discussion Papers (1837). London School of Economics and Political Science. Centre for Economic Performance, London, UK.

[img] Text (dp1837) - Published Version
Download (9MB)

Abstract

We use data on 10,852 firms across 22 emerging markets to analyse how credit constraints and deficient firm management inhibit corporate investment in green technologies. For identification, we exploit quasi-exogenous variation in local credit conditions. Our results indicate that both credit constraints and green managerial constraints slow down firm investment in more energy efficient and less polluting technologies. Complementary analysis of data from the European Pollutant Release and Transfer Register (E-PRTR) reveals the pollution impact of these constraints. We show that in areas where more firms are credit constrained and weakly managed, industrial facilities systematically emit more CO2 and other gases. This is corroborated by the finding that in areas where banks needed to deleverage more after the Global Financial Crisis, industrial facilities subsequently reduced their carbon emissions considerably less. On aggregate this kept CO2 emissions 5.6% above the level they would have been in the absence of credit constraints.

Item Type: Monograph (Discussion Paper)
Official URL: https://cep.lse.ac.uk/_new/publications/discussion...
Additional Information: © 2022 The Authors
Divisions: Centre for Economic Performance
Subjects: H Social Sciences > HD Industries. Land use. Labor
H Social Sciences > HB Economic Theory
JEL classification: L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior > L23 - Organization of Production
G - Financial Economics > G3 - Corporate Finance and Governance > G32 - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure
L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior > L20 - General
Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q5 - Environmental Economics > Q52 - Pollution Control Costs; Distributional Effects; Employment Effects
Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q5 - Environmental Economics > Q53 - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
Date Deposited: 09 Jan 2023 12:03
Last Modified: 01 Oct 2024 23:21
URI: http://eprints.lse.ac.uk/id/eprint/117807

Actions (login required)

View Item View Item

Downloads

Downloads per month over past year

View more statistics