Emission trading schemes and cross-border mergers and acquisitions

IF 5.5 3区 经济学 Q1 BUSINESS Journal of Environmental Economics and Management Pub Date : 2024-02-24 DOI:10.1016/j.jeem.2024.102949
Yajie Chen , Dayong Zhang , Kun Guo , Qiang Ji
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Abstract

The Emission Trading Scheme (ETS) provides a market mechanism to mitigate carbon emissions and has been introduced in many countries. Its fundamental idea is to make carbon emissions costly. Consequently, firms undertaking cross-border expansions may have to consider this extra cost when entering markets with an ETS. They may avoid these countries or relocate their investment to countries without an ETS. Using a large sample of international firms between 2002 and 2019, we investigate this issue via a difference-in-difference approach. Our results show that ETS implementation leads to significantly less cross-border merger and acquisition (M&A) deals in the host countries, indicating an avoidance effect or potential carbon leakage. Further analysis reveals that ETS implementation decreases firms’ financial performance and increases market risks, both contributing to cross-border M&A decisions. We demonstrate strong evidence of cross-sectoral differences, where carbon-intensive sectors tend to bear higher costs. This study contributes to the environmental economics and finance literature and provides evidence with policy relevance.

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排放交易计划与跨国并购
排放交易计划(ETS)为减少碳排放提供了一种市场机制,并已在许多国家推行。其基本理念是使碳排放成本高昂。因此,进行跨国扩张的企业在进入有排放交易计划的市场时,可能不得不考虑这一额外成本。它们可能会避开这些国家,或将投资转移到没有排放交易计划的国家。我们利用 2002 年至 2019 年间的大量国际企业样本,通过差分法研究了这一问题。我们的结果表明,排放交易计划的实施导致东道国的跨境并购(M&A)交易明显减少,这表明存在回避效应或潜在的碳泄漏。进一步的分析表明,排放交易计划的实施降低了企业的财务业绩,增加了市场风险,这两点都会影响跨国并购决策。我们展示了跨行业差异的有力证据,碳密集型行业往往承担更高的成本。本研究为环境经济学和金融学文献做出了贡献,并提供了具有政策相关性的证据。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
CiteScore
8.00
自引率
4.30%
发文量
91
期刊介绍: The Journal of Environmental Economics and Management publishes theoretical and empirical papers devoted to specific natural resources and environmental issues. For consideration, papers should (1) contain a substantial element embodying the linkage between economic systems and environmental and natural resources systems or (2) be of substantial importance in understanding the management and/or social control of the economy in its relations with the natural environment. Although the general orientation of the journal is toward economics, interdisciplinary papers by researchers in other fields of interest to resource and environmental economists will be welcomed.
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