Relationship between carbon emission trading schemes and companies’ total factor productivity: evidence from listed companies in China

Tang, Maogang; Cheng, Silu; Guo, Wenqing; Ma, Weibiao; Hu, Fengxia

doi:10.1007/s10668-022-02552-8

Cited by 14 publications

(8 citation statements)

References 113 publications

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“…Carbon derivatives trading includes carbon emissions trading and corresponding futures options. Lastly, consulting services can cover green wealth management, fund custody, carbon insurance, and other products [19].…”

Section: Organizational Dimensionmentioning

confidence: 99%

Carbon Derivatives-Directed International Supervision Laws and Regulations and Carbon Market Mechanism

Cheng

2022

Sustainability

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With the global acknowledgment of the Kyoto Protocol came the carbon derivatives such as carbon futures, options, and swap contracts. The innovative carbon derivatives are complex in design and contain risks that are difficult to predict and avoid. The global Carbon Market should have higher requirements in the supervision laws and regulations. To this end, the financial system theories and the financial characteristics of carbon derivatives are expounded. The three-dimensional structural modeling technique of systems engineering is introduced to construct the Carbon Market framework. The proposed framework factors for the organization, product, and policy dimensions of the Carbon Market are also described. Additionally, this model explains the market organization, the instruments and media connecting market supply and demand, and government regulation measures. In particular, the supervision and management aspects of the policy dimension are introduced in detail. The Carbon Market and relevant law systems in the United States, the European Union, and India are mainly studied and compared. Based on the comparison results, the necessity of market supervision is explained. Finally, the Big Vector Autoregression model is used to study the relationship between the Carbon Market, energy market, and financial market. After the introduction of the National Carbon Market, the correlation between the energy market and the financial market has become relatively complex but also presents a certain degree of asymmetry. According to the above results, the paper proposes to use the “regulatory sandbox” mechanism to improve the regulation of the subject and object of the carbon financial and legal relationship and try to carry out regulatory innovation for the risks of the entire carbon market.

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Section: Organizational Dimensionmentioning

confidence: 99%

Carbon Derivatives-Directed International Supervision Laws and Regulations and Carbon Market Mechanism

Cheng

2022

Sustainability

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“…Column (1) presents the result without the inclusion of firm-level control variables, with a coefficient of about -0.005, which is significantly negative at the 5% level, indicating that firms significantly reduce their labor income share during low carbon transition process. Column (2) shows that, after controlling for firm-level characteristic variables, the regression coefficient of -0.004 for did, which is significantly negative at the 1% level, further suggesting that firms significantly reduce their labor income share in the low-carbon transition process. In terms of economic significance, in column (2), for example, the average labor income share in the pilot areas of carbon trading is reduced by about 3.3% on average (= -0.004/0.121*100%) compared to the non-pilot areas.…”

Section: Baseline Resultsmentioning

confidence: 98%

“…Current research on carbon trading policy has mainly focused on the effects on regional industrial structure upgrading [7], enterprise R&D innovation [8][9][10], enterprise investment efficiency [11], short-term value of enterprises [12], and total factor productivity [2][3][4][5]. In terms of employment, Wang and Ge [1] evaluated the impact of carbon trading policies on employment by using the micro-data of listed companies from 2007 to 2019 and the progressive differential model, and found that the pilot policies of low-carbon cities significantly improved the employment level of enterprises on the whole.…”

Section: Literature Reviewmentioning

confidence: 99%

“…(1) Enterprise size (Size), Total assets at the end of the period (yuan) and take the logarithm to express. (2) The year when the company was listed (Age), subtract the year of listing from the current year and take the logarithm. (3) The nature of the enterprise (Soe), private enterprises PLOS ONE take 1, state-owned enterprises take 0.…”

Section: Variable Definitionmentioning

confidence: 99%

“…There is little discussion on this question in existing studies. Notably, the green and low-carbon transformation of enterprises will accrue productivity gains due to technological upgrading [2][3][4][5], but only 20% of the productivity gains will be passed on to wages [6], causing a mismatch between labor compensation growth and productivity growth, and this will reduce the share of labor income. Enterprises' green and low-carbon transition may incur higher costs, which may directly lower labor wages, and hence affect labor income shares.…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Changes in the labor share of enterprises under the green and low-carbon transition: Empirical evidence from China’s carbon emission trading pilot

Luo,

Li,

Feng

2024

PLoS ONE

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Green and low carbon reflect the high-quality development, while income distribution is an indicator of the balance of development. Is there a lack of fairness in the process of green and low carbon transition of enterprises? Using data from A-share listed companies from 2009 to 2016, this paper constructs a DID identification framework for controlling the endogeneity problem using the 2013 carbon trading policy pilot as a quasi-natural experiment to empirically test the impact of corporate low-carbon transformation on corporate labor income share in the context of carbon trading policy. The findings indicate that carbon trading policy decreases the labor income share of firms. In addition, we demonstrate that the low-carbon transition promotes labor productivity, suggesting that the Porter’s hypothesis is confirmed in China, but the increase in labor wages is not in tandem with productivity growth, resulting in reduced labor income share. Heterogeneity analysis shows that the impact of carbon trading policy on labor income share is mainly pronounced in larger firms, high technology firms and persistent incumbent firms. Collectively, these results are expected to accurately improve our understanding on the impact of low-carbon transformation of enterprises on income distribution and provide reference for the government to formulate industrial policies and distribution mechanisms under low-carbon economy.

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Does the market-oriented environmental regulation promote firms’ technological innovation? Evidence from A-share listed companies in China

Shao,

Yang,

Chen

2023

Environ Dev Sustain

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Relationship between carbon emission trading schemes and companies’ total factor productivity: evidence from listed companies in China

Cited by 14 publications

References 113 publications

Carbon Derivatives-Directed International Supervision Laws and Regulations and Carbon Market Mechanism

Carbon Derivatives-Directed International Supervision Laws and Regulations and Carbon Market Mechanism

Changes in the labor share of enterprises under the green and low-carbon transition: Empirical evidence from China’s carbon emission trading pilot

Does the market-oriented environmental regulation promote firms’ technological innovation? Evidence from A-share listed companies in China

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