Does carbon trading affect the investment efficiency？——DEA test method based on enterprise-caliber

Abstract

Abstract In order to tackle the severe environmental problems associated with climate warming, countries worldwide have shifted their focus on micro-enterprises. They have effectively guided enterprises to participate in carbon emission projects by establishing several environmental regulations policies that internalize environmental costs. This process will also impact the business activities, innovation activities, and investment decisions of micro-enterprises. In this context, considering the clean development mechanism (CDM) project carried out by China in cooperation with developed countries and China's domestic PPP projects related to climate change mitigation as the research background, this study selects A-share listed companies from 2003 to 2017 as the research sample, constructs enterprise investment efficiency with Data envelopment analysis (DEA) model, and uses two-way fixed multi-period DID model and fixed year and industry OLS model to test the impact of carbon emission projects on the investment efficiency of industry and individual enterprises. The empirical results show that whether from the industry or individual level, carbon emission projects have significantly promoted investment efficiency. The participation of enterprises in carbon trading projects can improve their investment efficiency by increasing R&D (research and development) investment, alleviating financing constraints, and improving risk-taking levels. Further research shows that the investment efficiency of state-owned enterprises, enterprises with a high proportion of institutional investors, and enterprises in highly active carbon market areas is more significantly affected by carbon emission projects.