Proceedings of the 2025 3rd International Academic Conference on Management Innovation and Economic Development (MIED 2025)

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Extreme Heat Risk and Corporate Green Investment: Evidence from Chinese High-Carbon Firms

Authors
Bingcheng Tang1, *
1North China Electric Power University, Beijing, 102206, China
*Corresponding author. Email: tangbingsheng0802@163.com
Corresponding Author
Bingcheng Tang
Available Online 17 September 2025.
DOI
10.2991/978-94-6463-835-6_84How to use a DOI?
Keywords
Extreme heat; Corporate green investment; Executive green perceptions; ESG
Abstract

This paper seeks to examine the correlation between severe temperatures and the extent of corporate green investment. We examine a group of high-carbon enterprises listed on China's A-share market from 2010 to 2022, with data on very high temperatures in the cities housing these firms. Extremely high temperatures markedly increase the level of enterprises’ green investment. The results undergo a number of rigorous tests, encompassing alternate indicators, the instrumental variables method, and propensity score matching methodology. The findings from the mechanism tests demonstrate that executives possessing strong green perceptions and elevated corporate ESG ratings can amplify the influence of extreme heat on the extent of firms’ green investment. Furthermore, the effect of extreme heat on firms’ green investment is more significant for non-state-owned enterprises, those with high equity concentration, and firms located in central and western cities. These findings elucidate the process by which extreme climate influences corporate green investment behavior from many viewpoints.

Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 2025 3rd International Academic Conference on Management Innovation and Economic Development (MIED 2025)
Series
Advances in Economics, Business and Management Research
Publication Date
17 September 2025
ISBN
978-94-6463-835-6
ISSN
2352-5428
DOI
10.2991/978-94-6463-835-6_84How to use a DOI?
Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Bingcheng Tang
PY  - 2025
DA  - 2025/09/17
TI  - Extreme Heat Risk and Corporate Green Investment: Evidence from Chinese High-Carbon Firms
BT  - Proceedings of the 2025 3rd International Academic Conference on Management Innovation and Economic Development (MIED 2025)
PB  - Atlantis Press
SP  - 785
EP  - 808
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-835-6_84
DO  - 10.2991/978-94-6463-835-6_84
ID  - Tang2025
ER  -