The effect of corporate energy management on carbon productivity: Regression discontinuity evidence from China

Abstract

Achieving ambitious carbon reduction targets will inevitably require corporate-level action to reduce carbon emissions. Little research, however, quantitatively explores how to promote coordinated carbon reduction and economic gains from a micro-enterprise perspective. Based on China's key energy-consuming units energy conservation management policy, this paper employs a regression discontinuity design with China Employer-Employee Survey data to investigate the impact of energy management on carbon productivity at the firm level. We find that the policy significantly improves corporate energy management and carbon productivity. Every one standard deviation increase in energy management level will lead to a 101 % increase in carbon productivity relative to its mean. The currently low levels of energy management necessitate proactive energy management practices to enhance carbon productivity. The results are robust to bandwidth choices, placebo test, donut approach, and model specifications. This paper provides important insights for policymakers, corporate managers, and other stakeholders to improve corporate energy management systems and reduce carbon emissions.