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ORIGINAL RESEARCH article

Front. Environ. Sci.
Sec. Environmental Policy and Governance
Volume 12 - 2024 | doi: 10.3389/fenvs.2024.1414086
This article is part of the Research Topic Green Finance & Carbon Neutrality: Strategies and Policies for a Sustainable Future View all 29 articles

Is carbon trading working for construction companies green development ? Evidence from listed Chinese companies

Provisionally accepted
Jinzhao TIAN Jinzhao TIAN *Yisheng Liu Yisheng Liu Mengru Lan Mengru Lan
  • Beijing Jiaotong University, Beijing, China

The final, formatted version of the article will be published soon.

    This study investigates the impact of China's carbon emission trading (CET) framework on the green development of the construction sector, a topic that has been underexplored. Utilizing annual data from 107 publicly listed construction companies from 2007 to 2022, we apply green total factor productivity (GTFP) as a metric for green development. Our findings reveal that GTFP increased by 0.36 during this period. Using the Difference-in-Differences (DID) methodology, we account for factors such as market dimensions, ownership structure, financial stability, geographical location, and state financial aid. The interaction term coefficient in our model is 0.0089, significant at the 1% level, indicating that CET implementation has significantly improved GTFP in construction enterprises.Heterogeneity analysis further shows that the CET's impact is more pronounced in large-scale, state-owned, highly indebted enterprises, those located in the eastern region, and those receiving government subsidies, with coefficients of 0.112, 0.0108, 0.0092, 0.0133, and 0.0099, respectively, all significant at the 1% level. These results underscore the importance of unified market development and tailored governance strategies. The study concludes with policy recommendations and calls for further research to explore CET's nuanced impacts across different sectors and regions.

    Keywords: construction firms1, carbon emission trading2, green development3, Difference-in-Differences Model4, green total factor productivity5

    Received: 08 Apr 2024; Accepted: 12 Jul 2024.

    Copyright: © 2024 TIAN, Liu and Lan. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY). The use, distribution or reproduction in other forums is permitted, provided the original author(s) or licensor are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.

    * Correspondence: Jinzhao TIAN, Beijing Jiaotong University, Beijing, China

    Disclaimer: All claims expressed in this article are solely those of the authors and do not necessarily represent those of their affiliated organizations, or those of the publisher, the editors and the reviewers. Any product that may be evaluated in this article or claim that may be made by its manufacturer is not guaranteed or endorsed by the publisher.