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Lookup NU author(s): Dr Vu TrinhORCiD
This work is licensed under a Creative Commons Attribution 4.0 International License (CC BY 4.0).
This study examines the influence of sustainable governance, specifically climate governance, on carbon risk within the global energy sector. Additionally, we investigate the role of eco-innovation as a mediating factor in this relationship. By analyzing a dataset comprising 13,376 publicly listed energy companies from 91 different countries and employing Baron and Kenny's (1986) four-step mediation model, our research shows that improved climate governance mechanisms result in decreased carbon emissions from energy firms. This reduction can be primarily attributed to their increased participation in eco-innovation initiatives. Furthermore, these main findings are more pronounced in companies with robust environmental, social, and governance (ESG) practices. Our results also reveal various firm-level and country-level characteristics that moderate our identified relationship. Moreover, our results remain consistent even after addressing potential concerns related to endogeneity and sample selection bias. This research provides valuable insights for policymakers and managers who seek to mitigate carbon emissions within the global energy sector while fostering environmentally responsible practices to combat the impacts of climate change.
Author(s): Liêu ML, Dao T, Nguyen TH, Trinh VQ
Publication type: Article
Publication status: Published
Journal: Energy Economics
Year: 2024
Volume: 137
Print publication date: 01/09/2024
Online publication date: 26/07/2024
Acceptance date: 15/07/2024
Date deposited: 21/07/2024
ISSN (print): 0140-9883
ISSN (electronic): 1873-6181
Publisher: Elsevier BV
URL: https://doi.org/10.1016/j.eneco.2024.107782
ePrints DOI: 10.57711/sbs1-n677
