Path Analysis of The Carbon Market's Impact on Corporate Carbon Emission Reduction

Ziyang Chen

doi:10.54097/a7jeqk60

Authors

Ziyang Chen

DOI:

https://doi.org/10.54097/a7jeqk60

Keywords:

Carbon market; low carbon development; corporate carbon management; strategies for the carbon market; carbon market incentives.

Abstract

The focus of this study is to explore how carbon markets have been effective in motivating companies to reduce carbon emissions globally. Through the setting of emission quotas and a series of fair and strict trading rules, the carbon market not only stimulates the intrinsic motivation of enterprises to reduce greenhouse gas emissions but also pushes forward climate governance on a global scale. This paper elaborates on the theoretical basis and operational mechanism of the carbon market, especially its key role in facilitating enterprises to reduce emissions through economic incentives, improving their ability to comply with environmental regulations, creating more market access opportunities, promoting innovation in environmental technologies, and enhancing the green brand image of enterprises in the eyes of the public. This study aims to provide insights for business managers to help them optimize their carbon reduction strategies and references for policymakers to promote corporate emissions reduction more efficiently and accurately when formulating relevant policies to jointly address global climate change challenges.

Downloads

Download data is not yet available.

References

[1] Newell R G, Pizer W A, Raimi D. Carbon markets 15 years after kyoto: lessons learned, new challenges. Journal of Economic Perspectives, 2013, 27(1): 123–146.

[2] Marco A C, Maria E. Carbon market: business incentives for sustainability. The International Food and Agribusiness Management Review, 2003, 5(4): 1–16.

[3] Lee S Y. Corporate carbon strategies in responding to climate change. Business Strategy and the Environment, 2011, 21(1): 33–48.

[4] Newell R G, Pizer W A, Raimi D. Carbon markets: past, present, and future. National Bureau of Economic Research. 2012.

[5] Calel R. Carbon markets: a historical overview. Wiley Interdisciplinary Reviews: Climate Change, 2013, 4(2): 107–119.

[6] Böhm S, Misoczky M C, Moog S. Greening capitalism? a marxist critique of carbon markets. Organization Studies, 2012, 33(11): 1617–1638.

[7] Doda B, Gennaioli C, Gouldson A, et al. Are corporate carbon management practices reducing corporate carbon emissions? Corporate Social Responsibility and Environmental Management, 2015, 23(5): 257–270.

[8] Piper K, Longhurst J. Exploring corporate engagement with carbon management techniques. Emerald Open Research, 2021, 3, 9.

[9] Rodriguez Lopez J M, Engels A, Knoll L. Understanding carbon trading: Effects of delegating CO2 responsibility on organizations’ trading behaviour. Climate Policy, 2016, 17(3): 346–360.

[10] Saunders C, Barber A. Carbon footprints, life cycle analysis, food miles: global trade trends and market issues. Political Science, 2008, 60(1): 73–88.

[11] Mora Rodríguez M, Flores Muñoz F, Valentinetti D. Corporate impact of carbon disclosures: a nonlinear empirical approach. Journal of Financial Reporting and Accounting, 2020, 19(1): 4–27.

[12] Elsayih J, Datt R, Tang Q, et al. Exploring the determinants of carbon management system quality: The role of corporate governance and climate risks and opportunities. Accounting & Finance. 2023.

[13] He B, Tang W, Wang J, et al.Low-carbon conceptual design based on product life cycle assessment. The International Journal of Advanced Manufacturing Technology, 2015, 81(5-8): 863–874.

[14] Busch T, Schwarzkopf J. Carbon management strategies - a quest for corporate competitiveness. Progress in Industrial Ecology, an International Journal, 2013, 8(1/2): 4.

[15] Damert M, Paul A, Baumgartner R J. Exploring the determinants and long-term performance outcomes of corporate carbon strategies. Journal of Cleaner Production, 2017, 160, 123–138.

[16] Shi Y, Paramati S R, Ren X. The growth of carbon markets in Asia: The potential challenges for future development. 2019, Retrieved from http://hdl.handle.net/10419/222754

[17] Liu Z, Deng Z, He G, et al. Challenges and opportunities for carbon neutrality in China. Nature Reviews Earth & Environment, 2022, 3(2): 141–155.