Author(s)

Nuoxin Tan, Ziheng Yang

Corresponding Author

Nuoxin Tan

ABSTRACT

On January 5, 2021, China's ecological environment department issued the interim carbon emissions trading management (Trial). This policy will be implemented on February 1, 2021. The establishment of a carbon trading market with carbon dioxide emission rights as a commodity requires enterprises to respond to the state's call and thereby reduce carbon emissions. From another aspect, the implementation of this policy brings new business opportunities for enterprises. The article first discusses the impact of the carbon emission trading system on new energy automobile companies. By selecting BYD Co., Ltd., a typical new energy automobile company among domestic car companies, as the research object, and use the event study method to investigate the influence of the policy implementation on BYD's stock returns. The results show that the promulgation of the policy has a significant impact on the return of BYD's stock market, and suggestions are provided based on the research results. For the government, it should strengthen the disclosure of carbon market information, establish and improve a strict reward and punishment system, and provide preferential treatment in relevant taxes and financial subsidies. As for BYD, it vigorously develops carbon trading product innovation, develops more low-carbon and zero-carbon product varieties, and meets the diverse needs of more people.

KEYWORDS

Carbon Emissions Trading, Enterprise stock price, new energy automobiles