Low-Carbon Strategies Considering Corporate Environmental Responsibility: Based on Carbon Trading and Carbon Reduction Technology Investment

Abstract

This paper focuses on the optimal strategic choice of carbon trading and carbon reduction technology investment under the cap-and-trade system. We consider a carbon-dependent production enterprise that trades carbon emission rights or invests in carbon reduction technologies under the regulation of the cap-and-trade system. The enterprise undertakes corporate environmental responsibility (CER) and aims to maximize the comprehensive benefits of both the economy and the environment. Using numerical simulation, we analyze the impacts of the CER coefficient and initial carbon quotas on the comprehensive benefits, optimal emission reduction rate, and production quantity of the enterprise. Our main contribution is studying the low-carbon strategic option for CER production enterprises to maximize the comprehensive benefits by trading carbon emission permits or investing in carbon emission reduction technologies. We found that the carbon emission trading mechanism plays an important role in promoting enterprises to reduce carbon emissions and is a beneficial supplement to the carbon cap policy. Under different initial carbon quotas allocated by the government, the manufacturer strategically chooses to trade carbon emission rights or invest in carbon reduction technologies. CER is a significant factor in encouraging companies to reduce carbon emissions proactively.

The impact mechanism of carbon emission reduction performance on financial performance based on carbon neutral targets: Evidence from Chinese energy enterprises

“…Amidst the current climate crisis, organizations that cause substantial environmental pollution could face penalties or even closure. The notion of sustainable development stresses the importance of economically, socially, and environmentally balanced advancements (Axon, 2016;Y. Yuan, Zhang, Wang, & Wang, 2022).…”

Unlocking the Anticancer Potential of Ionic Liquids

“…Faı ´sca et al [57] have reported the repurposing of the antimalarial drug, hydroxychloroquine (HCQ), as an efficient antiviral treatment for SARS-CoV-2, using the dicationic family of ILs to enhance the physicochemical properties. N 4 Yuan et al [58] have studied the use of cholinium-amino acid-based ILs (CHAAILs) to improve the solubility and permeation of poorly soluble drugs. The solubility of ferulic acid and puerarin was significantly increased with the addition of only a small amount of CHAAIL.…”

“…Yuan et al. 58 have studied the use of cholinium‐amino acid‐based ILs (CHAAILs) to improve the solubility and permeation of poorly soluble drugs. The solubility of ferulic acid and puerarin was significantly increased with the addition of only a small amount of CHAAIL.…”

Voluntary Disclosure of Carbon Emissions Information, Managerial Ability, and Credit Ratings

“…Research on whether disclosure of corporate environmental performance is useful for investors to evaluate corporate value has long received much attention in the field of environmental accounting [15][16][17][18][19][20][21]. Previous studies have mainly concentrated on the impact of environmental performance on corporate value [21][22][23][24][25][26][27][28][29][30][31][32][33].…”