气候变化领域集成服务门户(CCPortal): Do creditors price climate transition risks? A natural experiment based on China's carbon emission trading scheme

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DOI	10.1016/j.iref.2024.01.006
	Do creditors price climate transition risks? A natural experiment based on China's carbon emission trading scheme
	Ren, Yi-Shuai; Derouiche, Imen; Hassan, Majdi; Liu, Pei-Zhi
发表日期	2024
ISSN	1059-0560
EISSN	1873-8036
起始页码	91
卷号	91
英文摘要	The pursuit of carbon neutrality by China signifies the country's resolute commitment to proactively tackle climate change. However, traditional energy firms, which function as the pillars of the domestic economy, surely face a significant challenge in the form of decarbonization. In light of climate transition risks, this study employs the difference-in-difference (DID) model to investigate the impact of China's carbon emission trading scheme (ETS) on the debt financing costs of listed high-carbon firms (HCFs). The findings indicate that the significant increase in debt financing costs of HCFs under ETS can be attributed to the dual vulnerability that HCFs exhibit, consisting of heightened credit risk and a diminished environmental reputation. Specifically, the implementation of ETS regulations results in elevated operating costs and future cash flow risks for firms, which subsequently escalates credit risk. This is especially true for establishments situated in regions characterized by high carbon emissions and high scores on the Low Carbon Economic Transition Assessment Index. Such data suggests creditors are progressively placing greater emphasis on the reputation of low-carbon environmental practices. Additional study suggests that firms that possess inferior qualification endowments, less external financing capabilities, and weaker risk-diverting capabilities are more susceptible to the effects of ETS and are subjected to more transformation pressure. The findings of this research hold substantial importance in terms of advancing ETS initiatives in a concentrated, phased, and clustered fashion, guaranteeing technological advancements and seamless transitions for HCFs throughout the carbon peak cycle, and eventually bolstering society's climate adaptability as a whole.
英文关键词	Carbon emission trading scheme; Debt financing cost; Climate transition risk; Listed high -carbon firms; China; Difference -in -difference model
语种	英语
WOS研究方向	Business & Economics
WOS类目	Business, Finance ; Economics
WOS记录号	WOS:001162994000001
来源期刊	INTERNATIONAL REVIEW OF ECONOMICS & FINANCE
文献类型	期刊论文
条目标识符	http://gcip.llas.ac.cn/handle/2XKMVOVA/299607
作者单位	Hunan University; Hunan University; Hunan University; University of Auckland; University of Luxembourg; Universite de Tunis; China National Tobacco Corporation
推荐引用方式 GB/T 7714	Ren, Yi-Shuai,Derouiche, Imen,Hassan, Majdi,et al. Do creditors price climate transition risks? A natural experiment based on China's carbon emission trading scheme[J],2024,91.
APA	Ren, Yi-Shuai,Derouiche, Imen,Hassan, Majdi,&Liu, Pei-Zhi.(2024).Do creditors price climate transition risks? A natural experiment based on China's carbon emission trading scheme.INTERNATIONAL REVIEW OF ECONOMICS & FINANCE,91.
MLA	Ren, Yi-Shuai,et al."Do creditors price climate transition risks? A natural experiment based on China's carbon emission trading scheme".INTERNATIONAL REVIEW OF ECONOMICS & FINANCE 91(2024).