Abstract
In December 2020, the Korean government announced the “2050 Carbon Neutral Promotion Strategy.” For the paradigm shift to a carbon-neutral society, it is necessary to examine factors affecting carbon productivity considering the two goals of carbon reductions and economic growth. This study investigates the potential factors affecting carbon productivity of firms participating in the Korean Emission Trading Scheme (KETS) and examines the relationship between innovation activity such as R&D investment and environmental policy with carbon productivity. In this study, carbon productivity is defined as the total output divided by total carbon emissions. It also considers innovation effect on environmental performance of firms by industry because each industry has a different production process and carbon reduction ability. The results show that carbon productivity has been influenced by innovation activity such as R&D investment and introduction of first and second phases of KETS. In addiotion, technological progress and environmental policy effects on environmental performance vary across industries. Thus, in this study, determinants of carbon productivity are analyzed and compared by industry. The results show that innovation activities have a positive relationship with carbon productivity by all industries at the 5% significance level. On the other hand, it is confirmed that the effect of environmental policy varies by industry.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
