How does corporate R&D investment respond to climate policy uncertainty? Evidence from heavy emitter firms in the United States

Khanh Cong Gia Hoang

123 citations0/0 files storedCorporate Social Responsibility and Environmental Management

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

Climate Change Policy and Economics Environmental Sustainability in Business Capital Investment and Risk Analysis

Abstract

Abstract This study explores how climate policy uncertainty (CPU) affects research and development (R&D) investment of heavy emitter firms in the United States during 2000–2019. Our empirical evidence indicates that while CPU exerts a positive impact on R&D investment of general firms, it seems to be a completely different story for heavy emitter firms. After a battery of sensitivity tests, we find a robust negative impact of CPU on R&D investment of heavy emitters, suggesting that those firms play a “wait‐and‐see” strategy in response to changes in environmental policies until more is known to make decisions. However, such behavior is not observed in light emitters. Even among heavy emitters, we show that the impact of CPU is only pronounced in heavy emitters with more technology uncertainty. Further analyses show such an impact varies with management sentiment, managerial ability, and firm maturity. Our findings have implications for policymaking and corporate strategy of heavy emitters in response to CPU.

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 123 citations exist upstream.

References

2016Measuring Economic Policy Uncertainty*1984Upper Echelons: The Organization as a Reflection of Its Top Managers 1994Investment under Uncertainty 2009The Impact of Uncertainty Shocks 2015Policy Uncertainty and Corporate Investment 2011Quantifying Managerial Ability: A New Measure and Validity Tests 2019Firm-Level Political Risk: Measurement and Effects*2005Slack Resources and the Performance of Privately Held Firms

Cited by

2023Climate policy uncertainty, oil price and agricultural commodity: From quantile and time perspective 2023How does climate policy uncertainty affect the carbon market?2024Climate policy uncertainty and energy transition: Evidence from prefecture-level cities in China 2023Climate Policy Uncertainty and Corporate Investment: Evidence From the U.S. Tourism and Hospitality Sector 2024Exploring the impact of environmental regulations and green innovation on corporate investment and cash management: evidence from Asian economies

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.