China's ETS pilots: Program design, industry risk, and long-term investment

Does China’s Emission Trading Scheme Affect Corporate Financial Performance: Evidence from a Quasi-Natural Experiment

“…(Huang et al, 2022). The fluctuation of the allowance prices of the separate ETS pilots transmits uncertainties to the regulated firms' future cash flows (Li et al, 2022), forcing them to cut emissions immediately or demand excessive carbon quotas. Hence, the urgent transition and high pressure caused by regulatory requirements may lead to firms' losses, and these uncertainties are challenging for the market to price accurately.…”

“…These trials offered valuable insights and understanding crucial for policy adjustment and subsequent policy formulation. Some recent studies suggest that the regional ETS pilots reduced local energy consumption, carbon emissions (Hu et al, 2020;Zhang et al, 2020), and haze pollution (Yan et al, 2020) and improved green total factor productivity (Li et al, 2022).…”

Has the Carbon Trading Pilot Market Improved Enterprises’ Export Green-Sophistication in China?

“…Varying policies are adopted given the different environmental backgrounds of each pilot; therefore, their final effects also differ. According to the research of Li et al [35], this study analyzes the heterogeneous impact of different policies on enterprises' EGS through the following model…”

“…To better identify the effect of the CTPM on the EGS of enterprises and eliminate the potential impact of the NECT launch, we believe that it is also more important to limit the sample study period to 2016. When evaluating the impact of CTPM, the existing literature has also set the sampling period to 2016 for reasons of data availability and avoiding interference from other factors [25,35].…”

“…Table 11 shows that the coefficients of lnccer are negative, indicating that more transactions of CCER are less conducive to improvement in EGS. Excessive CCER trading volume may have an impact on the demand for carbon quota, reduce the demand for carbon quota, and lower the carbon price [35], which is not conducive to active performance of enterprises and the improvement of EGS.…”