Research On The Impact Of Carbon Risk On Corporate Environmental Protection Investmen

Under the background of the world’s efforts to promote environmental governance and the realistic pressure of energy structure transformation,our government has gradually promoted ecological environment protection to a new height.The Chinese government has incorporated the construction of "Beautiful China" into the goal of building a strong socialist modernization country,and incorporated "ecological environment construction" into the overall layout of "economic,political,cultural,social and ecological development".In the report of the 20 th National Congress of the Communist Party of China,General Secretary Xi Jinping pointed out that we will continue to adhere to the concept that clear waters and green mountains are as good as mountains of gold and silver,and actively and steadily promote peak carbon dioxide emissions and carbon neutrality,deepen the energy revolution,speed up the planning and construction of a new energy system,and actively participate in the global governance of climate change based on China’s energy resource endowment.With China’s courage to take responsibility in the process of climate governance,companies will also face more severe and complex environmental risks.If they continue to adhere to the previous production mode,the reputation of the company may be greatly affected due to environmental pollution,the compliance cost will increase sharply,and they will also face stricter legal sanctions.With the rise of carbon risk,will companies adjust their business strategies? Can the government’s macro-control policies achieve the expected results? The answers to these questions will provide new solutions for China to further improve its low-carbon policy and strive to achieve the goals of peak carbon dioxide emissions and carbon neutrality at an early date.According to the theory of environmental externality,when economic subjects engage in economic activities,the impact on the environment is far greater than the cost paid by companies themselves,and then external diseconomy is formed.Government intervention can alleviate this external dis-economic phenomenon to a certain extent and achieve healthy and sustainable economic development.Based on environmental externality theory,resource-based theory,legitimacy theory and promotion tournament theory,this paper analyzes the impact of carbon risk on environmental protection investment of companies.Taking listed companies in China from 2011 to 2021 as samples,and the signing of Paris Agreement as a quasi-natural experiment,it empirically tests the theoretical hypothesis by using double difference model,and explores the influence mechanism of carbon risk on environmental protection investment of companies from three aspects: economic growth pressure,regulatory policy and environmental protection subsidy policy.According to the environmental characteristics,this paper studies the heterogeneity from three aspects of industries,finance and ecologic.The results show that(1)the increase of external carbon risk will stimulate companies to attach importance to environmental protection,and then adjust investment strategies and use more funds to environmental protection investment;(2)The economic growth pressure of the government weakens the impact of carbon risk on environmental protection investment of companies,and financial policies such as vertical supervision policy and government environmental protection subsidy can encourage companies to increase environmental protection investment when facing carbon risk;(3)The impact of carbon risk on environmental protection investment of companies is heterogeneous due to different industries and finance where companies are located.Industries with less competition and poor financial environment tend to be more sensitive to carbon risk.The contributions of this paper are mainly in theory and practice.Theoretically,this paper verifies the impact of carbon risk on environmental protection investment of companies from the micro level,and the role of government regulatory policies in it,enriching the research on the economic consequences of carbon risk and the influencing factors of environmental protection investment;In practice,it studies the heterogeneity of government environmental regulation policies and regulatory characteristics,which provides theoretical support for China to improve the "peak carbon dioxide emissions" and "carbon neutrality" policy and better cope with global climate change,and also provides suggestions for our government to reasonably guide companies to actively respond to the green transformation development strategy.