Greening under pressure: How firms manage waste in times of climate policy uncertainty? The role of green technologies, policies, and carbon emission.

This study investigates how climate policy uncertainty (CPU) influences corporate waste management. Using a comprehensive dataset of 2345 firm-year observations from S&P 500 companies between 2010 and 2023, the results indicate that higher levels of climate policy uncertainty positively impact firms' recycling efforts. Firms experiencing greater CPU tend to have higher waste recycling ratios-the amount of recycled waste relative to total waste-and are more likely to adopt advanced recycling technologies. The study also examines how green technologies, carbon emissions, and corporate waste commitments shape these effects. Firms with strong green technology capabilities are better positioned to leverage regulatory uncertainty to improve waste management. Conversely, carbon-intensive firms respond more strongly to CPU, using it as a catalyst to move toward sustainability. Interestingly, the positive impact of corporate waste commitments diminishes during periods of high climate policy uncertainty. This suggests that even companies with robust sustainability strategies may struggle to sustain performance amid regulatory ambiguity. The research employs advanced econometric models to address endogeneity issues and ensure the robustness of findings. Additional analyses, such as alternative waste management proxies, different estimation methods, and various robustness tests, consistently support these conclusions. This study underscores the complex link between climate policy uncertainty, environmental practices, and waste management. It provides valuable insights for policymakers and corporate managers navigating the challenges of climate-related regulations. These findings contribute to the growing body of evidence on environmental sustainability and highlight the importance of targeted interventions to support high-emission industries while promoting long-term sustainable practices.