How does environmental policy uncertainty influence corporate green investments?

Environmental regulatory intensity, green finance and corporate green sustainable development performance

“…Environmental penalties and environmental taxes impose additional costs on firms, which may undermine their global competitiveness [ 21 ]. Furthermore, firms face significant uncertainties in both their internal and external environments, including the unpredictability of interactions between polluting firms and governmental bodies, as well as mismatches between the timing of environmental regulation enforcement and the life cycles of companies [ [22] , [23] , [24] ], which will inhibit the operation of enterprises.…”

Can the Green Finance Reform and Innovation Improve Green Investment of Heavily Polluting Enterprises?

“…This situation ultimately causes companies to lose their motivation for GI [21]. The third category of literature argues that significant uncertainty exists in the internal and external environment of enterprises, such as the uncertainty of the game between polluting enterprises and the government and the mismatch between the timing of ER implementation and the life cycle of enterprises [26][27][28]. The literature has verified the effect of GF policy on restraining the expansion of backward production capacity in heavily polluting industries.…”

Comparative Analysis of the Impact of Policy Uncertainty, Agricultural Output, and Renewable Energy on Environmental Sustainability

“…Moreover, EPU also can have negative but different impacts across different regions within an economy [18]. Some studies have examined the impacts of EPU on Chinese companies [18], BRICS economies [19], the EPU-green innovation relationship in Chinese cities, the EPU-RE relationship in the US [20], the EPU-energy efficiency association in Chinese cities [21], EPU impacts in G7 economies [22] and South Africa [23], and EPU-CO 2 relationship in South East-Asia [24], China [25], and BRICST nations [26]. However, the authors still believe there is a need to deeply examine the impacts of EPU on ES to better understand how EPU affects GHG emissions in developed and emerging economies.…”

“…Since EPU significantly impacts the trajectory of environmental sustainability initiatives, adopting environmentally friendly practices and a lack of clear and consistent rules might hamper cleaner technology innovation and its adoption [19][20][21]27]. The lack of evidence in the existing literature on how EPU impacts ES provides the authors with motivations to shed light on the relevance of stable and predictable policy frameworks for encouraging sustainable practices and RE uptake by investigating the influence of policy uncertainty.…”

“…In addition, RE sources are gaining traction as critical alternatives for mitigating climate change and reducing dependency on fossil fuels [23,24]. Analyzing the effects of RE deployment on environmental sustainability can give a thorough knowledge of their effectiveness in lowering carbon emissions and promoting a transition to greener energy systems [2,5,19,20,25,28]. Identifying the hurdles and enablers of RE adoption can also aid in developing policies that expedite the deployment of renewable technology [29].…”