The Impact of Carbon Emission Trading System on ESG of Agricultural Enterprises: Evidence from 24 Listed Agricultural Companies in China

Chen Shen

doi:10.62051/ca4vcy22

Authors

Chen Shen

DOI:

https://doi.org/10.62051/ca4vcy22

Keywords:

Carbon Emission Trading System; ESG; Agricultural Enterprises; Green Management Innovation; Green Total Factor Productivity; CSR Information Disclosure Quality.

Abstract

With China’s dual carbon goals of carbon peaking and carbon neutrality, the carbon emission trading system will play a crucial role. In addition, agriculture, which is closely linked to carbon emissions, is a foundational industry in China. It is worth paying attention to how it responds to carbon emission trading policies. This study uses data from agricultural listed enterprises from 2009 to 2022, and employs the Difference-in-Differences (DID) method and the intermediary effect model. The evidence suggests that the the carbon emission trading system will significantly improve the the ESG evaluation of agricultural enterprises. Furthermore, green management innovation, green total factor productivity, and CSR information disclosure quality of enterprises will act as intermediaries. The study calls for the government to accelerate the establishment of a national carbon trading market, improve reward and penalty systems, and evaluation frameworks for green innovation in agricultural enterprises. It also emphasizes the need to strengthen pre-subsidies for small-scale enterprises, encourage environmental literacy training for management personnel in agricultural enterprises, intensify green innovation efforts, and establish relevant department assessments of corporate social responsibility.

Downloads

Download data is not yet available.

References

Chen, Yingzi, Jianda Liu, and Fengmin Guo. "Does the carbon emission trading scheme foster the development of enterprises across various industries? An empirical study based on micro data from China." Carbon Management 14.1 (2023): 2259864.

Hua, Junguo, Di Zhu, and Yunfei Jia. "Research on the policy effect and mechanism of carbon emission trading on the total factor productivity of agricultural enterprises." International Journal of Environmental Research and Public Health 19.13 (2022): 7581.

Liu, Jingyin, and Xiao Liu. "Effects of carbon emission trading schemes on green technological innovation by industrial enterprises: Evidence from a quasi-natural experiment in China." Journal of Innovation & Knowledge 8.3 (2023): 100410.

Lv, Shigong, et al. "The path to green development: the impact of a carbon emissions trading scheme on enterprises’ environmental protection investments." Sustainability 15.16 (2023): 12551.

Nasih, Mohammad, et al. "Carbon emissions, firm size, and corporate governance structure: Evidence from the mining and agricultural industries in Indonesia." Sustainability 11.9 (2019): 2483.

Qi, Shao-Zhou, et al. "Influence of a pilot carbon trading policy on enterprises’ low-carbon innovation in China." Climate Policy 21.3 (2021): 318-336.

Tang, Kai, et al. "Does carbon farming provide a cost‐effective option to mitigate GHG emissions? Evidence from China." Australian Journal of Agricultural and Resource Economics 63.3 (2019): 575-592.

Wang, Wei, and Yue-Jun Zhang. "Does China's carbon emissions trading scheme affect the market power of high-carbon enterprises?." Energy Economics 108 (2022): 105906.

Wei, Qi, Zhaoying Zhou, and Dongliang Li. "Research on Export Promotion Mechanism of Agricultural Products Based on Cournot Model in the Context of Carbon Trading." Proceedings of the International Conference on Information Economy, Data Modeling and Cloud Computing, ICIDC 2022, 17-19 June 2022, Qingdao, China. 2022.

Xu, Jian, Feng Liu, and Yue Shang. "R&D investment, ESG performance and green innovation performance: evidence from China." Kybernetes 50.3 (2021): 737-756.

Zeng, Lishi, and Xuemei Jiang. "ESG and Corporate Performance: Evidence from Agriculture and Forestry Listed Companies." Sustainability 15.8 (2023): 6723.

Zhao, Xin, et al. "Does carbon trading lead to green technology innovation: recent evidence from Chinese companies in resource-based industries." IEEE Transactions on Engineering Management (2022).

Bai Xuejie, Song Pei, Wang Baolu. The Energy-Saving and Emission-Reduction Path of Carbon Emission Trading System: Efficiency Improvement or Structural Transformation? --Evidence from China's Provincial-Level Data [J]. Business Economics and Management, 2021, (08): 70-85.

Cai Haijing, Zhou Zhenying. Market-Driven Environmental Regulatory Policies and ESG Information Disclosure Quality [J]. Finance and Accounting Monthly, 2022, (24): 62-70.

Guo Haihong, Liu Xinmin. Spatial and Temporal Evolution of Green Total Factor Productivity in Chinese Agriculture [J]. China Management Science, 2020, 28(09): 66-75.

Hu Jun, Fang Qi, Long Wenbin. Carbon Emission Regulation, Corporate Emission Reduction Incentives, and Total Factor Productivity --Based on China's Carbon Emission Trading Mechanism Natural Experiment [J]. Economic Research, 2023, 58(04): 77-94.

Huang Yi, Cheng Hui. Impact of Carbon Market Construction on the Resource Dependency of Resource-Based Cities: Based on the Asynchronous DID Model [J]. Science and Technology Management Research, 2022, 42(15): 212-219.

Hu Yufeng, Ding Youqiang. Can the Carbon Emission Trading System Balance Corporate Benefits and Green Efficiency? [J]. China Population, Resources and Environment, 2020, 30(03): 56-64.

Hu Jiangfeng, Huang Qinghua, Pan Xinxin. Carbon Emission Trading System and Corporate Innovation Quality: Inhibition or Promotion [J]. China Population, Resources and Environment, 2020, 30(02): 49-59.

Jia Zhijie, Lin Boqiang, Wen Shiyan. Carbon Emission Trading Pilot and Total Factor Productivity --Also on Porter Hypothesis, Technology Spillover, and Pollution Haven [J]. Economic Dynamics, 2023, (03): 66-86.

Liu Kaihao, Tong Jiadong, Shen Yaru. Can Market-Oriented Low-Carbon Policies Promote Corporate Exports? --Evidence from Carbon Emission Trading Policy [J]. International Trade Issues, 2023, (09): 88-105.

Lu Binbin, Zhu Xiaomeng. Events, Vulnerability, and the Adaptation Ability of Small and Medium-sized Enterprises [J]. Journal of Chongqing University of Technology (Social Science), 2021, 35(04): 103-111.

Liu Lina, Zhao Yingxin. Carbon Information Disclosure Quality, Carbon Emission Trading, and Corporate Green Innovation --Empirical Evidence from Listed Companies in China's High-Carbon Industries [J]. Accounting Friend, 2023, (17): 27-34.

Li Shi, Huang Shizhong. From CSR to ESG Evolution --Literature Review and Future Prospects [J]. Financial Research, 2022(04): 13-25.

Li Xiaojing, Li Kexin. Can Family Involvement Improve Corporate ESG Performance? --Based on the Social Emotional Wealth Theory [J]. Finance and Accounting Monthly, 2022, (17): 151-160.

Su Lijuan, Tian Dan. Can the Environmental Equity Trading Market Induce Better ESG Performance for Heavy Polluting Enterprises? --Empirical Evidence from Carbon Emission Trading [J]. Journal of Northwest Normal University (Social Science Edition), 2023, 60(03): 134-144.

Wen Jie, Qin Yun. Impact of the Carbon Emission Trading System on the Operational Efficiency of Chinese Power Enterprises --Empirical Research Based on the Dual Difference-in-Differences Model [J]. Journal of Chongqing University of Technology (Natural Science), 2021, 35(05): 185-195.

Wan Xuan, Wang Jun. Carbon Emission Trading Policy, Product Transformation, and Green Product Innovation --Experience and Enlightenment from Chinese Export Enterprises [J]. International Trade Issues, 2022,(04): 91-106.

Wang Zhao, Wang Lianghu, Hu Jiangfeng. Research on the Opportunity Cost of Urban Emission Reduction under the Carbon Emission Trading System --Empirical Test Based on China's Carbon Emission Pilot Cities [J]. China Environmental Management, 2019, 11(06): 57-63.

Xi Longsheng, Zhao Hui. Dual Environmental Protection Cognition of Top Executives, Green Innovation, and Corporate Sustainable Development Performance [J]. Economic Management, 2022, 44(03): 139-158.

Yu Pei, Wu Kehan. Does Market-Incentive Environmental Regulation Lead to Outward Foreign Direct Investment? --Based on China's Carbon Emission Trading Pilot Policy Natural Experiment [J]. Ecological Economy, 2022, 38(08): 24-31+49.

Zhou Di, Liu Yichun. The Impact and Mechanism of China's Carbon Trading Pilot Policy on Urban Carbon Emission Performance [J]. China Environmental Science, 2020, 40(01): 453-464.

Zhang Jing, Shen Jun, Xu Meng. Does Carbon Emission Trading Promote Industrial Structural Transformation and Upgrading? --Evidence from China's Carbon Emission Trading Pilot Policy [J]. Economic Issues, 2023,(08): 84-91.

Zhou Peng, Wang Jiaqi, Wang Mei. Microscopic Effects of Carbon Emission Trading Policy --Based on Corporate Green Innovation and Heterogeneity Perspective [J]. Journal of China University of Petroleum (Edition of Social Sciences), 2023, 39(05): 19-33.

Zhang Yang, Yuan Baolong, Zheng Jingjing, et al. Strategic Response or Substantive Response? The Green Innovation Effect of Carbon Emission Trading Policy [J/OL]. Nankai Management Review, 1-24[2024-01-15].