DOI: 10.3897/brics-econ.6.e153844

Authors: Yushi Zhang

Abstract: As key actors in China’s transition to a green economy, companies are aligning their business strategies with environmental, social, and governance (ESG) goals. However, there is still a lack of empirical evidence on how ESG performance impacts financial outcomes in emerging markets. This study seeks to fill this gap by investigating the relationship between ESG indicators and corporate financial performance using a panel dataset of Chinese A-share companies, listed on Shanghai and Shenzhen exchanges, over the period from 2013 to 2022. Employing a two-way fixed-effects panel regression model, the analysis confirms a significant positive association between ESG performance and financial outcomes at the firm level. Furthermore, heterogeneity analysis reveals that this positive impact is more pronounced among NSOEs than SOEs. This differential impact is attributed to NSOEs’ greater operational flexibility and responsiveness to market conditions in implementing ESG strategies. The findings contribute to the growing body of literature on ESG, offering a large sample of context-specific evidence from China and highlighting ownership structure as a critical moderating factor. These results have practical implications for policymakers and investors seeking to promote sustainable economic growth through ESG-based practices in emerging markets.

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DOI: 10.3897/brics-econ.6.e141639

Authors: Nyiko Worship Hlongwane, Hlalefang Khobai

Abstract: This study aims to investigate the impact of disaggregated renewable energy sources on life expectancy in the BRICS nations from 1990 to 2023, using linear, non-linear and non-parametric models. This research challenges long-held beliefs about the impact of renewable energy on human health. It reveals the intricate links between different energy sources and life expectancy in the BRICS countries. Based on the QPNARDL results, hydropower is found to harm life expectancy. Based on the PNARDL model, its impact varies across countries. Based on the SQR and PCSE models in the BRICS nations, however, it appears to have a positive impact on life expectancy. According to the QPNARDL, SQR and PCSE models, wind energy reduces life expectancy in BRICS nations. However, the PNARDL model shows that wind energy has a positive impact on life expectancy in Brazil and China, and a negative impact in India and Russia. Other Renewables, including bioenergy, boost life expectancy in the BRICS nations based on the SQR and PCSE models, while hurting life expectancy based on the QPNARDL and PNARDL models. The results suggest that the impact of renewable energy sources on life expectancy varies between countries and models. These findings have significant implications for policymakers managing the transition to renewable energy; they emphasise the importance of informed, evidence-based decision-making. The study recommends promoting hydropower, wind energy and other renewable energy sources, such as bioenergy, in the BRICS countries to increase life expectancy.

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DOI: 10.3897/brics-econ.3.e91590

Authors: Ding Xiaowei, Maria Petrovskaya

Abstract: As a formal environmental regulation, environmental tax is important for the green upgrading of industrial structure. In order to explore the impact mechanism of environmental tax on corporate financial performance, this paper constructs a difference-difference (DID) model with two-way fixed effects based on financial data of Chinese A-share manufacturing listed companies from 2015 to 2019. We have found that environmental taxes contribute directly and significantly to the improvement of financial performance and that technological innovation, in some degree, produces mediating effect. Financing constraints not only negatively moderate the relationship between environmental taxes and technological innovation; they also inhibit the impact of technological innovation on financial performance and have a moderate mediating effect as part of the indirect influence. In the heterogeneity analysis, the direct effect is more significant among State-owned enterprises (SOEs) and eastern enterprises, and the moderating effect of financing constraints is more significant among non-SOEs and eastern enterprises. This paper advances the understanding of economic consequences of environmental tax levies from the perspective of property and regional heterogeneity. It provides empirical evidence in support of the applicability of Porter’s hypothesis in China and makes suggestions for the optimization of environmental policy and improvement of financial performance of enterprises.

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