The impact of green energy infrastructure on firm productivity: Evidence from the Three Gorges Project in China

Cheng, D; Shi, X; Yu, J

The impact of green energy infrastructure on firm productivity: Evidence from the Three Gorges Project in China

Cheng, D Shi, X

Yu, J

Permalink

Publisher:: ELSEVIER
Publication Type:: Journal Article
Citation:: International Review of Economics and Finance, 2021, 71, pp. 385-406
Issue Date:: 2021-01-01

Open Access

Copyright Clearance Process

Recently Added
In Progress
Open Access

This item is open access.

The embargo period expires on 1 Feb 2023

Adobe PDF

Download Accepted ManuscriptAdobe PDF (1.4 MB)

View on publisher's site

View statistics

Full metadata record

Field	Value	Language
dc.contributor.author	Cheng, D
dc.contributor.author	Shi, X https://orcid.org/0000-0001-9653-7395
dc.contributor.author	Yu, J
dc.date.accessioned	2021-02-01T22:46:10Z
dc.date.available	2021-02-01T22:46:10Z
dc.date.issued	2021-01-01
dc.identifier.citation	International Review of Economics and Finance, 2021, 71, pp. 385-406
dc.identifier.issn	1059-0560
dc.identifier.issn	1873-8036
dc.identifier.uri	http://hdl.handle.net/10453/145713
dc.description.abstract	© 2020 Elsevier Inc. Despite the dominant role of hydropower in the global power generation mix and the popularity of studying the productivity impact of infrastructure investment, there is a lack of research regarding the impact of hydropower projects on firm productivity. Such a positive impact can promote a more ambitious action plan for mitigating carbon emissions. This study investigates whether and how China's Three Gorges Project (TGP), the world's largest hydropower project, may affect the productivity of manufacturing firms in the province where the project is located. The empirical results reveal a statistically and economically significant positive impact of the TGP on manufacturing firms’ productivity, and various robustness checks confirm the soundness of our findings. We also verify three channels, the capital deepening effect, the scale effect, and the competition effect, robustly. This productivity impact suggests that hydropower projects have an economic benefit in addition to the other well-known ones, such as flood control and improvement of the shipping capacity. The findings imply that policy makers need to consider the broad benefits of green energy beyond the conventional cost-benefit tradeoff, which can help justify some marginal green energy projects and technologies.
dc.language	English
dc.publisher	ELSEVIER
dc.relation.ispartof	International Review of Economics and Finance
dc.relation.isbasedon	10.1016/j.iref.2020.09.022
dc.rights	info:eu-repo/semantics/embargoedAccess
dc.subject	1401 Economic Theory, 1402 Applied Economics, 1502 Banking, Finance and Investment
dc.subject.classification	Economics
dc.title	The impact of green energy infrastructure on firm productivity: Evidence from the Three Gorges Project in China
dc.type	Journal Article
utslib.citation.volume	71
utslib.for	1401 Economic Theory
utslib.for	1402 Applied Economics
utslib.for	1502 Banking, Finance and Investment
pubs.organisational-group	/University of Technology Sydney/DVC (International)
pubs.organisational-group	/University of Technology Sydney/DVC (International)/Australia-China Relations Institute
pubs.organisational-group	/University of Technology Sydney
utslib.copyright.status	open_access	*
utslib.copyright.embargo	2023-02-01T00:00:00+1000Z
dc.date.updated	2021-02-01T22:46:04Z
pubs.publication-status	Published
pubs.volume	71

Abstract:

© 2020 Elsevier Inc. Despite the dominant role of hydropower in the global power generation mix and the popularity of studying the productivity impact of infrastructure investment, there is a lack of research regarding the impact of hydropower projects on firm productivity. Such a positive impact can promote a more ambitious action plan for mitigating carbon emissions. This study investigates whether and how China's Three Gorges Project (TGP), the world's largest hydropower project, may affect the productivity of manufacturing firms in the province where the project is located. The empirical results reveal a statistically and economically significant positive impact of the TGP on manufacturing firms’ productivity, and various robustness checks confirm the soundness of our findings. We also verify three channels, the capital deepening effect, the scale effect, and the competition effect, robustly. This productivity impact suggests that hydropower projects have an economic benefit in addition to the other well-known ones, such as flood control and improvement of the shipping capacity. The findings imply that policy makers need to consider the broad benefits of green energy beyond the conventional cost-benefit tradeoff, which can help justify some marginal green energy projects and technologies.

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10453/145713