Abstract
The credibility of China's carbon neutrality commitment is an interesting and controversial topic. We investigate this issue using an exogenous policy experiment in 2021, in which the Chinese government surprisingly accelerated the pace of action to meet its pledge. We find that domestic investors perceive China's carbon emission commitment as credible by responding sharply to the possible enhanced energy control policies in China due to its pledge. Our evidence also suggests that investors’ concerns regarding escalating policies drive their reactions. Our evidence contributes to the discussion on perceived credibility and investor reactions to policy announcements.
Sign-in/Register to access full text options 
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.
