Abstract
The carbon emissions trading (CET) policy realizes the internalization of emission reduction costs of related enterprises, which may affect their investment and management decisions, but has seldom received attention. Therefore, based on the panel data of A-share listed enterprises in eight energy-and‑carbon-intensive industries in China during 2009–2018, this paper employs the difference-in-differences (DID) and the difference-in-differences based propensity score matching methods (PSM-DID) to empirically evaluate the impact of China's CET policy on investment expenditure of CET-covered enterprises in seven pilot regions. The results indicate that: first of all, the investment expenditure of CET-covered enterprises has been reduced by 0.2449% due to China's CET policy during the sample period in general. Second, this impact shows significant industrial and regional heterogeneity. The CET policy reduces the investment expenditure of related enterprises in the building material and steel industries, but not in the other six industries. It also has a reducing impact on the investment expenditure of related enterprises in Beijing and Guangdong, but not in the other five pilot regions. Third, the impact began to appear in the second year of the implementation of CET policy, and it has shown an increasingly strengthening trend with continuous implementation. In addition, the central findings remain robust when we test the parallel trend assumption and apply the difference-in-differences-in-differences (DDD) method to further eliminate the interference of other factors.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: 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.