Research On The Impact Of Carbon Constraints On The Capital Structure Of China’s Power Industry

In recent years,environmental pollution have attracted much attention.In order to achieve sustainable economic development,carry out "green economy" and effectively control greenhouse gas emissions,most countries have been trying to explore.The establishment of carbon market has achieved great results in recent years.Since 2013,China has successively carried out regional carbon pilot projects in seven provinces and cities including two provinces and five cities.Although each of the seven carbon pilot projects has its own emphasis on the industry,they all focus on the power industry first.First,electricity is the basis of national economic development.Second,China’s power enterprises mainly rely on thermal power generation,the power industry has become a well deserved major carbon dioxide emitter in China.How will the implementation of carbon emission trading mechanism affect the capital structure of power generation industry? What will happen to the investment and financing of power generation enterprises under the background of enhanced carbon constraints,promotion or inhibition? What is its influence mechanism?Under the "30-60" double carbon background,taking the implementation of carbon emission trading mechanism in the power generation industry as a "quasi natural experiment",based on the panel data of 59 listed power companies from 2008 to 2020,this thesis empirically tests the impact of the implementation of carbon pilot policy on the capital structure of China’s power listed companies by using the DID method,and analyzes how the carbon pilot policy affects the capital structure of power enterprises.In addition,the SYS-GMM method is used to deal with the possible endogenous problems in the basic regression results from a dynamic point of view.Empirical conclusions: First,after the implementation of carbon emission trading mechanism,the asset liability ratio of power enterprises is significantly reduced.Second,the mandatory implementation of carbon emission trading mechanism makes heavy emission enterprises such as power enterprises face greater pressure on emission reduction,resulting in an increase in the risk of financial distress,which promotes enterprises to reduce financial leverage.The result shows that the financial leverage of the enterprise is the result of the financial leverage.Third,the article verifies another possibility,that is,the enhancement of carbon constraints leads to the reduction of investment rather than the increase of financial distress risk,so as to reduce the asset liability ratio.The empirical results show that the coefficient of treat * time is not significant.This evidence further shows that the financial leverage of the enterprise is the result of the financial leverage.The research of this thesis can not only provide reference for the capital structure and energy structure optimization of the power generation industry,but also provide reference for other industries to be included in the national unified carbon market.For power generation enterprises,we should: First,seize the double carbon opportunity and actively carry out carbon trading;Optimize the energy structure of enterprises,vigorously develop clean energy and reduce dependence on fossil fuels.Second,broaden financing channels,enrich financing options for the power industry and reduce dependence on bank loans.Third,adjust the capital structure of enterprises,optimize the proportion of long-term and short-term debt in the debt structure,and reduce the cost of capital.The government should: First,actively promote the reform of power marketization and enhance the cost transfer ability of power enterprises.Second,give full play to the carbon market regulation mechanism to promote energy conservation and emission reduction in the power industry.