상세정보

This paper examines the mechanisms and consequences of environmentally motivated asset sales. Using a sample of 4,879 U.S. plants reported by the Environmental Protection Agency (EPA) from 2011 to 2020, my study finds robust evidence that plants owned by environmentally risky firms under heightened regulatory stringency are 5 to 11 percentage points more likely to be sold. This effect is pronounced in emission-intensive plants that are associated with financially constrained firms, state enforcements, and low divestiture costs. Furthermore, selling firms enjoy higher compensations in firm value and operating performance compared to non-selling firms, while I find no evidence of agency or greenwashing motives in plant sales. On the other hand, sold plants tend to deteriorate workplace safety, employee health, and abatement efforts, which translates to aggravated local sustainability conditions.

1. Introduction 1
2. Data and Methodology 9
 2.1. Sources of Emission Data 9
 2.2. Regression Specification 11
 2.3. Summary Statistics 12
3. Effect of Environmental Risk on Asset Sale Decisions 13
 3.1. Baseline Regression 14
 3.2. Identification Strategy 15
 3.3. Difference-in-Differences Results 16
4. Mechanisms of Environmentally Induced Asset Sales 17
 4.1. Direct Control of Environmental Risks 18
 4.2. Climate-related Financial Risk 18
 4.3. State-level Enforcements and Divestiture Costs 19
5. Real Effects and Implications 20
 5.1. Aggregate Firm-Level Outcomes 21
  5.1.1. Market Reaction 21
  5.1.2. Propensity Score Matching 23
  5.1.3. Post-sale Performance 24
  5.1.4. Use of Proceeds 24
 5.2. Sold Plant Outcomes 26
 5.3. Real Effects on Local Society 27
6. Conclusion 28
References 31
Appendix 36