The role of financing constraints and environmental policy on green investment

H Costa, L Demmou, G Franco, S Lamp - Economics Letters, 2024 - Elsevier
Despite ambitious carbon reduction targets set by policymakers worldwide, current
investments fall well short of the net-zero emissions scenario. This paper investigates the
impact of financing constraints (FCs) on green investment among large, publicly listed firms
across diverse sectors and countries. We find that FCs significantly reduce the propensity to
undertake green investments by 2.5 percentage points. This result is even more pronounced
in a difference-in-differences framework when focusing on the exogenous increase in …

The Role of Financing Constraints and Environmental Policy on Green Investment

S Lamp, H Costa, G Franco - Guido, The Role of Financing Constraints … - papers.ssrn.com
Despite ambitious carbon reduction targets set by policymakers worldwide, current
investments fall well short of the net-zero emissions scenario. This paper investigates the
impact of financing constraints (FCs) on green investment among large, publicly listed firms
across diverse sectors and countries. We find that FCs significantly reduce the propensity to
undertake green investments by 2.5 percentage points. This result is even more pronounced
in a difference-in-differences framework when focusing on the exogenous increase in …
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