UNLOCKING ENERGY EFFICIENCY THROUGH GREEN MERGERS AND ACQUISITIONS: IMPLICATIONS FOR CHINA’S NATURAL CAPITAL-INTENSIVE INDUSTRIES

As China pursues high-quality economic development, improving energy efficiency in heavy-polluting industries has become a critical policy objective. Green mergers and acquisitions have emerged as a strategic approach to achieving this goal by facilitating resource integration and promoting sustainable industrial transformation. This study examines the impact of green mergers and acquisitions on energy efficiency in China’s heavy-polluting enterprises from 2010 to 2022. The empirical findings reveal that: (1) Green mergers and acquisitions significantly improve energy efficiency, which underscores green mergers and acquisitions’ role in optimizing resource allocation and fostering synergy between economic performance and environmental sustainability. (2) The effect of green mergers and acquisitions is more pronounced in state-owned enterprises, highlighting their resource advantages in driving green transformation. These findings provide insights for policymakers and corporate decision-makers on leveraging green mergers and acquisitions to enhance energy efficiency and strengthen natural capital management in heavy-polluting industries.