The Impact Of Carbon Emission Trading System On Carbon Emission Reduction Of Heavily Polluting Enterprises

Since the reform and opening-up policy,the extreme waste of environmental resources resulting from China’s high-speed economic growth has become a recognized problem.The demand for high-quality economic development and the commitment to achieving "dual-carbon" goals have made green and low-carbon development an irreversible trend.Against this background,the development of a carbon emission trading market has become an important institution to promote the achievement of "dual-carbon" goals and green development.In 2021,China officially established a national carbon trading market,indicating that the development of China’s carbon trading market has entered a new stage and further promoted the green transformation of Chinese enterprises.This paper summarizes the literature related to carbon emission trading systems,corporate investment behavior,and corporate carbon emission reduction.Based on the theories of externalities,reservoir theory,Porter hypothesis,and pollution rights trading,it analyzes the impact mechanism of carbon emission trading systems on carbon emission reduction in heavily polluting enterprises.Then,using a multi-period DID model with data from heavily polluting companies listed on the A-share market in carbon emission pilot regions from 2010 to 2020,it studies the carbon emission reduction effect between the carbon emission trading system and heavily polluting companies,and then analyzes its transmission mechanism.Robustness tests are conducted using counterfactual,placebo,and propensity score matching methods.Finally,heterogeneity analysis is conducted based on the different property rights of heavily polluting enterprises in different pilot regions.The aim is to provide theoretical basis for the construction of China’s carbon emission trading system from a micro perspective.The research results show that(1)the implementation of carbon emission trading systems promotes carbon emission reduction in heavily polluting enterprises.(2)In the short term,the carbon emission trading system can promote the financial investment of heavily polluting enterprises to achieve carbon emission reduction.(3)In the long term,the carbon emission trading system can promote the green investment of heavily polluting enterprises to achieve carbon emission reduction.(4)By analyzing the carbon emission reduction of heavily polluting enterprises with different property rights,it is found that the carbon emission reduction effect of the carbon emission trading system is more significant for non-state-owned enterprises than for state-owned enterprises.Based on the research results,corresponding feasible policies are proposed from the perspectives of both enterprises and the government.