The Impact of China's Carbon Emissions Trading Pilot on Firm's Earnings Per Share : A Psm-Ddd Empirical Analysis

In September 2011, the General Office of China’s National Development and Reform Commission issued the Notice on the Pilot Project of Carbon Emissions Trading. Over the past decade, the carbon emission trading system (ETS) has gradually developed in China. Based on a quasi-natural experiment of China’s carbon emission trading market pilot program, a PSM-DDD model is used to test the impact of the policy on the EPS of listed companies which is classified as key GHG emitters in the pilot region from 2009 to 2014, accurately evaluate the impact of the ETS policy, and compares it with the DID method. The empirical results show that the carbon trading pilot policy reduces the EPS of firms, which is due to the higher cost of meeting the emission reduction obligations and the purchase of carbon allowances