Impact of climate on firm value: Evidence from the electric power industry in Brazil

Lucas, Edimilson Costa; Mendes‐Da‐Silva, Wesley

doi:10.1016/j.energy.2018.04.024

Cited by 16 publications

(11 citation statements)

References 26 publications

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“…Considering the studies conducted to determine the values of the companies in the energy sector; Perez-Gonzalez and Yun (2013), and Auffhaummer and Mansur Erin (2014) investigated impacts of the climate on the value of the firm in the electric sector and found that firm values were affected by climate changes. Similarly, as mentioned before, Lucas and Mendes-Da-Silva (2018) found that temperature and rainfall affect the value of companies in the energy sector.…”

Section: Literature Reviewsupporting

confidence: 67%

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A Model Suggestion for Determining the Values of Firms the Energy Sector: An Application in Bist Electricity Index

Kurtaran¹,

Günay²,

Kurtaran³

2021

IJEEP

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Section: Literature Reviewsupporting

confidence: 67%

“…Therefore, there are different factors that affect the value of companies in the energy sector. For example, Lucas and Mendes-Da-Silva (2018) analyzed the effect of climate change on firm value and found that temperature and precipitation affect firm value in the energy sector.…”

Section: Introductionmentioning

confidence: 99%

A Model Suggestion for Determining the Values of Firms the Energy Sector: An Application in Bist Electricity Index

Kurtaran¹,

Günay²,

Kurtaran³

2021

IJEEP

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“…Thus, in this study, climate change mitigation efforts of enterprises, and supporting them from investors via the stock market can be considered representative values of the eco-surplus culture. To our knowledge, most of the studies regarding climate change and the firm's value are based on external factors, including weather, climate news, and policies [8,[19][20][21][22][23][24], and little is known about the firm's mitigation strategies and valuation. Therefore, the current study employed the Bayesian Mindsponge Framework (BMF) analytics to investigate the mutual interactions between a firm's mitigation strategies and investors via the stock value of 178 American companies listed in the S&P 500 from 2016 to 2021.…”

Section: Introductionmentioning

confidence: 99%

Enterprise’s strategies to improve financial capital under climate change scenario – evidence of the leading country

Quang-Loc¹,

Nguyen²,

La³

et al. 2023

Preprint

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Climate change poses manifold consequences to human well-being as well as ecosystems. One of the most widely accepted measures to mitigate climate risks is at the firm level, aiming to reduce carbon dioxide and innovate climate-friendly technology. However, doing so requires comprehensive factors, including legislation, the company’s strategy, and finance. Using the Bayesian Mindsponge Framework (MBF) for analyzing 178 enterprises listed in S&P 500 companies from 2016 to 2021, the current study examined how their climate risk mitigation efforts can affect their stock price. We found that emitted carbon dioxide negatively affects the stock price. In contrast, the income and mitigating strategies, including producing eco-friendly products, using renewable energy, and environmental expenditures investments, are positively associated with the increase in share value. However, the mitigation efforts are conditional on the income of the company. The results indicate that investors expect corporations to transform financial capital from the stock market into bankable, climate-resilient projects. Based on these findings, we suggest that building an eco-surplus culture by stimulating climate change knowledge can be a promising approach to promoting a corporation’s mitigation efforts.

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“…Energy efficiency significantly affects the world economy, as well as regional and national energy balances (Hong et al, 2022). Energy is one of the economic lifelines of a country and its consumption has a strong adverse impact on climate change (Lucas and Mendes-Da-Silva, 2018;Cabeça et al, 2021;Campagnolo and De Cian, 2022). China, in particular, has been the world's largest energy consumer since 2007.…”

Section: Introductionmentioning

confidence: 99%

Spatial Heterogeneity Impacts of Bilateral Foreign Direct Investment on Green Energy Efficiency in China

2022

Front. Environ. Sci.

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At present, green energy transformation and climate policy are increasingly connected. The need to improve national competitiveness and implement climate and energy strategies means that an energy-consuming country like China must rapidly enhance its green energy efficiency (GEE) and energy consumption structure. The following paper contributes to the existing literature by analyzing the effects of bilateral FDI on GEE from the perspective of spatial correlation. Based on data from 30 Chinese provinces between 2003 and 2020, this paper uses multiple undesired output indicators covering eight pollutants to measure GEE and then uses the coupling function to measure the coordinated development level of bilateral FDI (CDFDI). According to the Panel Vector Autoregression model, there is a coupling relationship between bilateral FDI. Both the global Moran index and the local Moran scatter plot shows that GEE and CDFDI are characterized by spatial aggregation. This paper adopts the dynamic Spatial Dubin Model for empirical analysis. Our results reveal a significant positive impact of CDFDI on GEE in local and nearby regions. The impact of CDFDI on GEE is moderated by technological diffusion, nationalization, and environmental regulation, resulting in differential impacts on GEE in local and nearby regions. Furthermore, CDFDI with different investment motives has a boosting effect on local GEE. Among them, the mutual investment portfolio between China and developed countries has a negative impact on the local GEE. By contrast, the complementary investment motivation portfolio can boost GEE in local and adjoining regions in any period. This is the first paper to study the spatial effects of green energy efficiency and the heterogeneity of investment incentives to help Chinese international investment policymakers better understand the contribution of CDFDI to improving GEE and inform supportive policies. To improve green energy efficiency, the government must strengthen the implementation of the opening-up policy and create international capital flows suitable for local needs.

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Impact of climate on firm value: Evidence from the electric power industry in Brazil

Cited by 16 publications

References 26 publications

A Model Suggestion for Determining the Values of Firms the Energy Sector: An Application in Bist Electricity Index

A Model Suggestion for Determining the Values of Firms the Energy Sector: An Application in Bist Electricity Index

Enterprise’s strategies to improve financial capital under climate change scenario – evidence of the leading country

Spatial Heterogeneity Impacts of Bilateral Foreign Direct Investment on Green Energy Efficiency in China

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