Study on the Impact of the Price of Carbon Emission Permit on the Market Value of Thermal Power Enterprises

Abstract

In order to solve the problem of environmental disruption caused by excessive greenhouse gas emission, China has released the National Carbon Emissions Trading Market Construction Plan (Power Generation Industry), launched the national carbon emission trading system, and the power generation industry has become the breakthrough that starts the trading market of carbon emission permit firstly. Therefore, it is of great significance to study the correlation between the carbon emission permit trading market of our country and the market value of thermal power enterprises. As the basic industry of the national economy, the importance of power industry is self-evident. Especially, the energy structure of China’s power industry is single, relying heavily on coal for electricity. Carbon emissions are huge every year, and carbon emissions trading in the power industry has been put on the agenda. The study on the price of carbon emission permit and the market value of thermal power enterprises can not only provide more information for the government, but also provide a reference for investors. To this end, the price of carbon emission permit and the market price index of thermal power enterprises and three control variables are selected, and the selected variables data is processed to make them meet the conditions for establishing a VAR model. A classic VAR model is established using Eviews to study the impact of China’s carbon emission permit price on the market value of thermal power enterprises. Through Granger causality test, impulse response function and variance decomposition of the established VAR model, it is concluded that the price of carbon emission permit has weak positive impact on the market value of thermal power enterprises. The reasons of the problems in the process of obtaining the results are analyzed, and corresponding countermeasures and suggestions are proposed. Finally, conclusions and the suggestions to save energy and reduce emissions and increase company value in the context of the development of the carbon emission permit market are put forward for power enterprises.