The Impact of Low-Carbon Transition on Corporate Resilience in Chinese Energy Firms

The low-carbon transition is crucial for achieving long-term enterprise development. Using panel data on Chinese A-share listed energy firms from 2014 to 2022, this study examines the impact of low-carbon transition on corporate resilience at the firm level. We further explore the mechanisms through which low-carbon transition affects corporate resilience. The findings show that low-carbon transition is significantly associated with higher corporate resilience. More importantly, the mechanism analysis provides suggestive evidence that environmental, social, and governance (ESG) performance and financing constraints may serve as two potential mediating channels linking low-carbon transition to corporate resilience. Heterogeneity analysis indicates that the resilience-enhancing effect of reducing carbon emission intensity is more pronounced among non-state-owned firms and heavily polluting firms. This study provides micro-level evidence on the relationship between low-carbon transition and corporate resilience among Chinese energy firms and offers practical implications for energy firms and policymakers seeking to align environmental strategy with long-term stability.