Can Carbon Neutrality Commitment Contribute to the Sustainable Development of China’s New Energy Companies?

Abstract

Developing new energy is one of the most important measures to implement global carbon neutrality. Under the constraints of carbon emission reduction, the question of how to achieve the sustainable development of new energy enterprises has become an important issue among managers and investors. This study selects Chinese listed companies in the new energy industry as the research sample, employs the DID method and uses panel data to explore the role of carbon neutrality commitment in the sustainable growth of new energy companies. The results show that the carbon neutrality commitment has greatly improved the sustainable development of Chinese new energy companies, with the internal profitability and external investor sentiment of the enterprises being important mediating variables. Moreover, the effect of the carbon neutrality commitment on the sustainable growth of non-state-owned new energy firms is much more significant compared with that of state-owned enterprises, and the effect is more robust in the east than in the central and western regions. Based on the conclusions, this study provides practical implications for managers, investors and policymakers in order to promote the sustainable growth of new energy firms.