Examining the emission reduction effect of carbon emission trading and carbon tax synergism and their impact mechanisms to reduce the carbon emission of company: based on 247 listed companies of China

ABSTRACT

Using the panel data of Shanghai and Shenzhen A-share listed companies spanning from 2007 to 2021, we explore the impact of the synergism of carbon emission trading policy and carbon tax policy on the carbon emission level of enterprises through the difference-in-difference model, intermediary effect model, regulatory effect model. The research results show that: (1) Carbon emission trading and carbon tax both promote enterprises’ carbon emission reduction. (2) There are three paths for carbon emission trading and carbon tax policies to encourage enterprises’ carbon emission reduction actions synergistically: improving enterprises’ green technology innovation level, optimising energy structure, and accelerating industrial structure optimisation. (3) Mediated regulatory effect results show that the greater the company’s government support and R&D investment, the greater the synergism between carbon trading and carbon tax policies to drive green technology innovation and the better the carbon emission reduction effect of the company. (4) The synergism between carbon trading and carbon tax policies positively fosters public ownership companies’ carbon emissions reductions and heavily polluted industry companies.

KEYWORDS:

• Carbon emission trading
• carbon tax
• corporate carbon emission reduction
• policy synergism

Disclosure statement

No potential conflict of interest was reported by the author(s).

Data availability statement

The datasets used and/or analysed during the current study are available from the corresponding author upon reasonable request.

Ethical approval

This study conforms to the ethical and moral requirements.

Additional information

Funding

The work was supported by the National Social Science Fund of China [grant number 23FJYB029], the Innovation Strategy Research Plan Project of Fujian Province [grant number 2023R0050], and the Social Science Fund of Fujian Province [grant number FJ2024A005].

Notes on contributors

Chuang Li

Chuang Li was born in Liaoning Province, China. He is a professor and doctoral supervisor. He graduated from Shanghai Jiaotong University with a doctor’s degree. At present, he is the vice president of the School of Business Administration of Jimei University.

Tongtong Lei

Tongtong Lei, a PhD candidate at Jimei University. Her research focuses on the low carbon economy.

Liping Wang

Liping Wang was born in Shanxi Province, China. She is a professor and doctoral supervisor. She graduated from Donghua University with a doctor’s degree. At present, she is the vice president of the Finance and Economics College of Jimei University.