Rahman, Md Azizur and Ahmad, Rubi and Ismail, Izlin (2023) Does the US regional greenhouse gas initiative affect green innovation? Environmental Science And Pollution Research, 30 (6). pp. 15689-15707. ISSN 0944-1344, DOI https://doi.org/10.1007/s11356-022-23189-0.
Full text not available from this repository.Abstract
This study measures the impact of the implementation of the Regional Greenhouse Gas Initiative (RGGI) on firms' green innovation initiatives. We used 20 years of panel data from the Fortune 500 list of the US largest companies. Based on DID, a benchmark regression, the RGGI has a significant adverse effect on the green innovation of Fortune 500 companies, and we verified these findings with multiple robustness tests. As we investigate how energy-intensive industries were affected by RGGI, we found that it slowed down green innovation, but it was not statistically significant. This study provides a novel perspective on how the RGGI influences green innovation in firms and how different types of sectors respond to the policy. The findings indicate that the ``weak'' Porter Hypothesis has not been confirmed in the present carbon trading market (particularly the RGGI) for Fortune 500 firms in the USA. In terms of policy, we believe that a well-covered and differentiated legislation that fosters green innovation while being realistic about the policy's goal and the firm's environmental attitude, like emissions reduction through green innovation, is essential.
| Item Type: | Article |
|---|---|
| Funders: | UNSPECIFIED |
| Uncontrolled Keywords: | Market-based mechanism; Emission Trading Scheme (ETS); Regional Greenhouse Gas Initiative (RGGI); Firms' green innovation; Porter Hypothesis; Fortune 500; Difference-in-Difference; Propensity Score Matching based DID |
| Subjects: | T Technology > TD Environmental technology. Sanitary engineering |
| Divisions: | Faculty of Business and Economics |
| Depositing User: | Ms Zaharah Ramly |
| Date Deposited: | 28 Nov 2023 00:36 |
| Last Modified: | 28 Nov 2023 00:36 |
| URI: | http://eprints.um.edu.my/id/eprint/39426 |
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