Abstract
China’s economy has entered “New Normal”. Carbon tax will facilitate the deepening of capital, which exerts significant effects on enterprise’s low-carbon investment decision. Based on the case of coal electricity plan, the paper regards carbon tax as a variable in enterprise’s investment decision, adopts NPV (net present value) approach and IRR (internal rate of return) approach to explore into effects of carbon tax on enterprise’s investment decision by the difference between the prospective earnings of enterprise’s investment into energy-saving equipment and investment cost. The study finds that the implementation of carbon tax motivates enterprises to choose low-carbon and energy-saving equipment and brings extra investment earnings for enterprises. Therefore, it proves that carbon tax can effectively facilitate enterprises to execute decision-making on low-carbon investment with the support of government’s relevant finance and taxation incentive policies.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
More From: DEStech Transactions on Environment, Energy and Earth Science
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.