Research On The Impact Of Carbon Emission Trading Policy Implementation On Enterprise Performance

In recent years,the environmental pollution problems caused by pollutant emissions have become more and more serious,and countries around the world have established carbon emission trading markets.As the world’s largest economy and a major emitter of greenhouse gases,China has started a pilot carbon emissions trading market in seven pilot regions,including Shenzhen and Beijing,around 2013 in order to achieve the goal of reducing emissions and protecting the environment,with the aim of building a perfect carbon emissions trading system.Based on the above background,this paper will explore how China’s carbon emissions trading system has affected enterprises from three dimensions:financial performance,innovation performance and environmental performance.This paper will clarify the relationship between China’s carbon emission market and corporate performance,and also provide a developmental idea on how to establish a good development environment that balances environmental protection and economic growth.Based on the purpose of this paper,the power industry with high energy consumption and emission characteristics is selected as the research object,and the listed companies in the pilot region from 2008 to 2021 are used as the research sample;in order to ensure the accuracy of the research,the entropy value method is used to measure the comprehensive index of financial performance,R&D investment and environmental performance based on three different perspectives of financial performance,innovation performance and environmental performance,respectively.Bloomberg ESG Index as the explanatory variables,and construct the corresponding double difference(DID)model to investigate how carbon emissions trading would affect the corporate performance in different dimensions.Subsequently,a balanced trend test and robustness analysis are conducted to ensure the strong robustness of the study findings.Finally,the reliability of the findings obtained in the main regression is further verified with the help of the PSM-DID method,which consists of propensity score matching(PSM)combined with the double difference method(DID).The empirical results show that,controlling for possible influencing factors,carbon trading has a suppressive effect on the financial performance of power industry firms,while it has a significant enhancing effect on the innovation performance and environmental performance of power industry firms;the above findings also vary with the size of firms.In summary,the carbon trading mechanism in China’s pilot regions has achieved the goal of improving environmental governance for power industry firms and has led to innovative industrial restructuring.However,further measures need to be taken to enhance the value of the enterprise.