 The impact of pilot carbon market on firms' performance in ChinaLimin Luan, Pengfei Liu and Yingdan Mei Energy Economics, 2025, vol. 142, issue C Abstract: The pilot carbon market is a vital policy tool in China's pursuit of its carbon peak and neutrality goals. Different trading mechanisms within these pilot markets create varying economic incentives in carbon trading, leading to differentiated impacts on corporate financial performance. This study analyzes the effects of carbon market trading mechanisms on firm performance by examining trading regulations in pilot carbon markets. Our findings reveal that regulated enterprises exhibit significantly better average economic performance than unregulated enterprises following the implementation of carbon market pilots. We also identify that total volume determination, initial quota allocation mechanisms, and quota offset mechanisms significantly influence corporate performance. Specifically, carbon emissions trading enhances enterprise economic performance more effectively when pilot carbon markets adopt predetermined total allowances, conduct allowance auctions, or allow for a higher proportion of allowance offsets. Keywords: Emission trading; Firm performance; Environmental regulation (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:142:y:2025:i:c:s0140988324008739 DOI: 10.1016/j.eneco.2024.108164 Access Statistics for this article Energy Economics is currently edited by R. S. J. Tol, Beng Ang, Lance Bachmeier, Perry Sadorsky, Ugur Soytas and J. P. Weyant More articles in Energy Economics from Elsevier |
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