China’s Carbon Emissions and Trading Pilot, Political Connection, and Innovation Input of Publicly Listed Private Firms

Wei Liu, Chunquan Yu, Shixiong Cheng, Jingyi Xu and Yuzhao Wu
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Wei Liu: Economics and Management School, Wuhan University, Wuhan 430072, China
Chunquan Yu: Economics and Management School, Wuhan University, Wuhan 430072, China
Shixiong Cheng: School of Business, Hubei University, Wuhan 430062, China
Jingyi Xu: Economics and Management School, Wuhan University, Wuhan 430072, China
Yuzhao Wu: Economics and Management School, Wuhan University, Wuhan 430072, China

IJERPH, 2020, vol. 17, issue 17, 1-18

Abstract: Taking China’s carbon emissions and trading pilot (CCETP) as a quasi-natural experiment, this paper examines the impact of CCETP on publicly listed private firms’ innovation input and the moderating effect of the firms’ political connection based on the difference-in-differences model. The results show that CCETP has a significantly positive effect on the innovation input of Chinese publicly listed private firms. Moreover, the political connection of executives exhibits a positive moderating effect on CCETP’s impact on innovation input. Meanwhile, the effect is more significant in regions with high environmental protection investment and large publicly listed private firms. The conclusions could provide some policy enlightenment for China’s carbon market, as well as a rational adjustment of the relationship between political connection and innovation input of publicly listed private firms in the future.

Keywords: CCETP; publicly listed private firms; innovation input; political connection (search for similar items in EconPapers)
JEL-codes: I I1 I3 Q Q5 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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