The Impact Of Carbon Emission Constraints To Enterprise Performance Based On Threshold Regression

Global climate change, environmental pollution, resources become more deficient, isthreatening the survival of mankind. The contradiction between economic development andenvironmental protection increasingly grim, and attracting much attention of society. To achievesocial and economic development, low-carbon economy came into being, through institutionalinnovation, technological innovation, industrial restructuring, development of new energy, toreduce greenhouse gas emissions, in order to achieve an economic development status of thestate’s economic and social development and environmental resource win. Global carbonreduction mechanism has been formed. More and more countries and regions begin to implementpolicies and measures to reduce greenhouse gas emissions. Report to address climate changecaused by greenhouse gas in China’s―Twelfth Five-Year Plan‖, has adopted the carbon dioxideemissions per unit of GDP as a constraint to the development of indicators into a low carboneconomy, improve global climate planning. China, as the world’s second largest emitter ofcarbon dioxide, is also under increasing international pressure. In the government work reportthis year, the state clearly to reduce the intensity of carbon dioxide emissions by3.1%or more todevelop a clear goal; Director of the Beijing Institute of Science and Technology Policy andManagement Institute of Science Wang Yi pointed out:―’Thirteen Five’ plan has been formedimplicit constraint total carbon emissions, according to quantify carbon emissions targets specificcontrol is relatively fully.―. Enterprises as an important subject of social and economicdevelopment, needing to maximize the reduction of carbon dioxide and other greenhouse gasemissions, conserve resources, safeguard energy security, environmental protection and activelytake up social responsibility.This paper studies the impact of carbon emission constraints on firm performance. Basedon the theoretical analysis, this paper specifies the content of carbon emissions constraints. Based on the analysis of the existing literature to read, summarize the different aspects of theimpact of environmental regulation, such as energy saving impact on firm performance on firmperformance impact on business performance mechanism, through comparative analysis,exploratory qualitative elaborated carbon Emission constraints on firm performance impactmechanism, namely the level of corporate carbon dioxide emissions within a certain range, theincreases in carbon dioxide emissions, we can see an increase in energy consumption enterprises,the number of products will increase, so sales of goods obtained Sales revenue also increased, toenhance profitability, performance can be improved; and when the carbon constraint levelsexceed a certain level, we need to limit carbon emissions, in order to improve businessperformance, and promote healthy and sustainable development.In the empirical study, this paper choose18listed companies in high-polluting andhigh-energy industries, whose carbon emissions data and financial data come from year2005toyear2013as samples. Selecting CO2emissions of every output value as an argument to explainindicators: get the energy consumption of each year through field research, access to primary,with the help of carbon emission energy conversion factor to calculate the annual carbon dioxideemissions calculated; with ROA, ROE, NOS, to reflect corporate performance as the dependentvariable is interpreted indicators to analyze the different emphases verify different constraints oncarbon emissions affect corporate performance. By setting the threshold effect model, expand thequantitative empirical research, testing hypotheses. When CO2emissions of every output valueconstraints within3.4208t/one thousand Yuan, it shows positive relationship with the ROA, NOS,ROE; if it exceeds this constraint, it produces a negative impact with enterprise performance;When CO2emissions of every output value constraints within3.3874t/one thousand Yuan, itshows positive correlation with Tobin’s Q, if it exceeds this value, then it will produce a negativeimpact corporate performance. Because the performance evaluation index ROA, NOS, ROE arereflected in corporate profitability performance indicators, and guass operates to get the samethreshold value; but Tobin’s Q is a reflection of market value, growth potential performanceindicators, the result shows a slight difference. Model validation results can provide a referenceto the enterprise. Enterprises can select appropriate constraint ways according to their CO2 emissions, to ensure their effectiveness, stability, social status, and promote sustainabledevelopment.Results of this study showed that when the level of carbon emission constraints limitedwithin a certain range, can have a positive impact on business performance, but when the level ofcarbon dioxide emissions beyond the normal level of the enterprise, will hinder the developmentof enterprises. So, faced with the pressure of the current national carbon emissions, companiesneed to take the appropriate means of restraint, limiting their carbon emissions, in order toenhance business performance, and promote healthy and sustainable development of enterprises.Finally, this paper presents policy recommendations for businesses to conduct carbon constraintsand promote the smooth development of corporate carbon emissions constraints work.