 Does carbon risk amplify environmental uncertainty?Bin Gao, Jinlong Zhang and Xiaofeng Liu International Review of Economics & Finance, 2023, vol. 88, issue C, 594-606 Abstract: This paper uses the Carbon Emissions Trading (CET) as a quasi-natural experiment to empirically test the impact of carbon risk on enterprise environmental uncertainty from the perspective of policy regulation in China. Using data from A-share listed enterprises from CET-covered enterprises, this paper uses multiphase difference-in-differences (DID) strategy and finds that carbon risk amplifies the uncertainty of the enterprise environment. The test of the intermediary effect indicates that institutional ownership and the change of the shareholding ratio of the largest shareholder play a partial intermediary role between carbon risk and environmental uncertainty. In addition, the analysis of industry and enterprise heterogeneity reveals that the impact is more significant on enterprises in the oil industry, enterprises with high financing constraints and insufficient investment, and non-state-owned enterprises. Keywords: Carbon risk; Environmental uncertainty; Carbon emissions trading; Multiphase DID (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:reveco:v:88:y:2023:i:c:p:594-606 DOI: 10.1016/j.iref.2023.06.037 Access Statistics for this article International Review of Economics & Finance is currently edited by H. Beladi and C. Chen More articles in International Review of Economics & Finance from Elsevier |
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