Environmental regulation and corporate financialization: insight from Blue Sky Protection Campaign in China.

Environmental regulation restricts corporate pollution emissions and affects corporate investment decisions and asset allocation. Based on the data of A-share listed enterprises in China from 2013 to 2021 and the difference in differences (DID) model, this paper identifies the impact of environmental regulation on corporate financialization with the help of the "Blue Sky Protection Campaign (2018-2020)" (BSPC) of China. The results indicate that environmental regulation has a crowding-out effect on corporate financialization. Enterprises with stricter financing constraints receive more significant crowding-out effects. This paper provides a new perspective on the "Porter hypothesis." Under the constraint of financial resources and high environmental protection costs, enterprises carry out innovative activities and environmental protection investments by consuming financial assets to reduce the risk of environmental violations. The government's environmental regulation is an effective way to guide the financial development of enterprises, control environmental pollution, and promote enterprise innovation.

The real economic costs of COVID-19: Insights from electricity consumption data in Hunan Province, China.

The COVID-19 pandemic has caused extreme economic fluctuations. However, the magnitude of the economic cost of this extreme event remains challenging to quantify. The impact of the COVID-19 pandemic on the economy is estimated through firm-level electricity consumption data from Hunan province, China. Specifically, a difference-in-differences (DID) model was employed to estimate the real economic costs. The results indicate that electricity consumption in Hunan Province dropped by 27.8% during the early stage of the COVID-19 pandemic. Manufacturing and the transportation industry suffered the most severe declines. Electricity consumption began to recover after the virus was controlled. We suggest that government departments should take full measures to prevent and control COVID-19 outbreaks and associated economic impacts, in conjunction with preparing for economic recovery, deploying targeted measures to support different industries in response to the heterogeneity COVID-19 pandemic impacts. The COVID-19 has changed people's living habits and brought a new direction, the Internet industry, of economic growth. Hunan Province needs to accelerate the digital empowerment of traditional industries, develop the Internet, 5G technology, and new digital infrastructure to offset the negative impact of the COVID-19 pandemic. Electricity consumption is an applicable index in estimate the real economic cost of extreme events.