Green investments and firm performance

Arbeitspapier

This paper examines the impact of firms' green investments on a range of performance outcomes including the growth of output, employment, productivity, export intensity, and energy intensity. The analysis uses firm-level data from Ireland's industry sector over the period 2008-2016. To identify causal effects, a difference-in-difference propensity score matching is implemented. In addition to average effects across all firms, we identify and quantify heterogenous effects for different groups of firms. Our results indicate that in the medium-term green investments have positive and statistically significant effects on firms' performance. Taking into account firm heterogeneity, we find that the effects are stronger for firms which are larger, foreign-owned, more productive, and in low-tech industries. Taken together, this evidence suggests that environmental quality and firm performance go together.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ESRI Working Paper ; No. 672

Classification and Topics

• Classification: Wirtschaft ; Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity ; Firm Performance: Size, Diversification, and Scope ; Environmental Economics: General ; Environmental Economics: Government Policy
• Subject: Environmental policy ; green investments ; firm performance

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Siedschlag, Iulia ; Yan, Weijie
• Event: Veröffentlichung
• (who): The Economic and Social Research Institute (ESRI)
• (where): Dublin
• (when): 2020

Further information

• Handle: http://hdl.handle.net/10419/237943
• Last update: 10.03.2025, 11:44 AM CET