This study investigates the impact of corporate carbon performance on financing costs, focusing on S&P 500 companies from 2015 to 2022. Utilizing a fixed-effects regression model, the research reveals a complex U-shaped nonlinear relationship between carbon intensity (CI) and cost of debt (COD). The sample comprises 2896 firm-year observations, with CI measured by the ratio of Scope 1 and 2 greenhouse gas (GHG) emissions to annual sales. The findings indicate that companies with higher CI initially face increased COD due to heightened regulatory and operational risks. However, as CI falls below a certain threshold, further reductions in emissions can paradoxically lead to increased COD, likely due to the substantial investments required for advanced technologies. Additionally, a positive relationship between CI and cost of equity (COE) is observed, suggesting that shareholders demand higher returns from companies with greater environmental risks. These results underscore the importance of balancing short-term and long-term environmental strategies. The study highlights the need for corporate managers to communicate the long-term benefits of environmental efforts effectively to creditors and investors. Policymakers should consider these dynamics when designing regulations that incentivize lower carbon emissions.
Energy systems face serious difficulties due to economic policy uncertainty, which affects consumption trends and makes the shift to sustainability more difficult. While adjusting for economic growth and carbon emissions, this study examines the dynamic relationship between economic policy uncertainty and energy consumption (including renewable and nonrenewable) in China from 1985Q1 to 2023Q4. The research reveals the frequency-specific and time-varying relationships between these variables by employing sophisticated techniques such as Wavelet Cross-Quantile Correlation (WCQC) and Partial WCQC (PWCQC). Economic policy uncertainty and energy consumption do not significantly correlate in the short term; however, over the long term, economic policy uncertainty positively correlates with renewable energy consumption at medium-to-upper quantiles, indicating that it may play a role in encouraging investments in sustainable energy. On the other hand, EPU has a negative correlation with nonrenewable energy usage at lower quantiles, indicating a slow move away from fossil fuels. These results are confirmed by robustness testing with Spearman-based WCQC techniques. The study ends with policy recommendations to maximize economic policy uncertainty’s long-term impacts on renewable energy, reduce dependency on fossil fuels, and attain environmental and energy sustainability in China.
This study investigates the impact of tourism and institutional quality on environmental preservation, utilizing principal component analysis to generate three composite indices of environmental sustainability for 134 countries from 2002 to 2020. The results reveal that environmental sustainability indices have generally improved in lower- and middle-income nations but have declined in certain high-income countries. The findings also underscore the critical role of institutional quality—particularly regulatory standards, government effectiveness, anti-corruption efforts, and adherence to legal frameworks—in promoting environmental sustainability. However, the study shows that both domestic and international tourism expenditures can have adverse effects on environmental sustainability. Notably, these negative effects are exacerbated in countries with well-developed institutions, which is an unexpected outcome. This highlights the need for careful, thoughtful policymaking to ensure that the tourism sector supports sustainable development, rather than undermining environmental objectives.
Presented article takes a study done by researchers Davari & Strutton in the US in 2014 and replicated the same approach and methodology in evaluating how green marketing mix elements (product, price, promotion, place) influence brand associations, grand loyalty, perceived brand quality, and brand trust, in the context of retail chain stores in Czechia. The reason for this is the fact that the issue of reconciling pro-environmental beliefs of consumers with their real behavior is still topical. Businesses need to be careful with their green claims and focus on authentic green marketing in order to attract and retain the trust of environmentally conscious consumers in the long term. The research employs quantitative data analysis, drawing data from the survey, which was run online for five weeks and collected 4700 responses. The respondents are people who live in Czechia and have shopped in one of five stores at least during the last month. The reason for focusing on the Czechia is primarily the fact that green marketing is basically only on the rise here, while greenwashing still remains a significant problem. Six hypothesis were formulated, and linear regression analysis was used to test them. Key findings of the research revealed that green products and promotions positively influence brand associations and perceived brand quality, while green promotions significantly enhance brand loyalty and trust. Additionally, there was observed influence of consumers´ environmental concerns and consideration of future consequences significantly moderating the relationship between green marketing and brand equity. The findings provide insight for businesses to integrate green marketing strategies to increase brand trust, loyalty, and perceived quality while environmentally conscious consumers.
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