Seminar
![YWU](/sites/default/files/styles/crop_promo_image/public/images/promo/ywu-.png?itok=nEsqHQVt)
Wednesday, September 6, 2023, 12:30 pm – 1:30 pm
Speaker
Abstract:
How does private equity ownership affect firms' environmental performance? Using electricity generating unit level data from U.S. fossil fuel power plants, we find that private equity-backed buyouts reduce output-scaled CO2 and NOx emissions by 5.5% and 8.1%, respectively. The declines are mainly due to lower heat input per unit of output instead of lower input emission rates. The effects are concentrated in non-add-on deals, and are stronger for small plants and corporate divestiture deals. Our results suggest that private equity improves environmental performance by increasing production efficiency, but their effect on the non-efficiency component of environmental performance is generally insignificant.