Author(s)

Huang Jiemin ¹, Lin Jiehe ², Peng Ke ²

Affiliation(s)

¹ Shenzhen University of Information Technology, Shenzhen, Guangdong, 518172, China
² Harbin Institute of Technology, Harbin, China

Corresponding Author

Huang Jiemin

ABSTRACT

This study employs a difference-in-differences model based on corporate bond data from the Shanghai and Shenzhen stock exchanges between 2007 and 2021. It examines the effects of China's carbon trading policies and environmental tax policies on corporate financing costs and carbon emissions to reveal the interactive patterns between environmental policies and capital market pricing. Empirical results indicate that environmental policies exert a positive effect on corporate emissions reduction. Short-term carbon trading policies yield superior emission reduction effects, while carbon tax policies demonstrate more significant long-term reduction impacts. Regarding corporate financing costs, carbon trading policies effectively reduce financing expenses, whereas carbon tax policies increase them. Furthermore, heterogeneity analysis reveals that carbon disclosure levels and corporate ownership structures moderate the impact of environmental policies on firms. Firms with higher carbon disclosure levels are more affected by environmental policies, while state-owned enterprises exhibit a more pronounced response to such policies. The empirical findings of this study provide micro-level evidence for understanding the impact of environmental policies on corporate financing costs under the "dual carbon" goals, offering reference for policy optimization, corporate carbon management decisions, and investor risk assessment.

KEYWORDS

Environmental Tax, Emissions Trading System, Emission Reduction Effects, Financing Costs, High-Emission Enterprises

CITE THIS PAPER

Huang Jiemin, Lin Jiehe, Peng Ke, Comparative Study on the Dual Impact of environmental Tax and Emissions Trading System (ETS) on Emission Reduction Effects and Financing Costs for High-Emission Enterprises. Population, Resources & Environmental Economics (2025) Vol. 6: 30-38. DOI: http://dx.doi.org/10.23977/pree.2025.060204.

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