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Carbon emissions reduction: Crowding out or feeding back on corporate profitability?

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  • Huang, Zhehao
  • Su, Yaya
  • Zhao, Yuanqi

Abstract

This study examined the effect of carbon emissions reduction on corporate profitability. We theoretically prove that carbon emissions reduction would crowd out corporate profitability in the short run, shifting into a feeding-back effect in the long run. The findings provide reliable evidence for the synergy between environmental regulation and economic development.

Suggested Citation

  • Huang, Zhehao & Su, Yaya & Zhao, Yuanqi, 2025. "Carbon emissions reduction: Crowding out or feeding back on corporate profitability?," Finance Research Letters, Elsevier, vol. 74(C).
    • Handle: RePEc:eee:finlet:v:74:y:2025:i:c:s1544612324017185
    DOI: 10.1016/j.frl.2024.106689
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    References listed on IDEAS

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