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Carbon emission constraint: A catalyst for the shift from real economy to financialization?

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  • Xinglin Liu

Abstract

The goals of carbon peak and carbon neutrality have gained significant attention in China. Carbon‐intensive corporates are tasked with decoupling economic growth from carbon emissions. This research examines their potential for financialization based on the compulsory fulfillment requirement of carbon emission allowances and the emission‐free characteristics of financial assets. This research finds that carbon emission policy significantly promotes corporates to allocate more capital toward business operations in the real economy. It leads to an increase in capacity utilization efficiency and profitability for the main business. The findings support that the policy has a positive impact on the real economy.

Suggested Citation

  • Xinglin Liu, 2025. "Carbon emission constraint: A catalyst for the shift from real economy to financialization?," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 46(1), pages 590-601, January.
    • Handle: RePEc:wly:mgtdec:v:46:y:2025:i:1:p:590-601
    DOI: 10.1002/mde.4393
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    Cited by:

    1. Feng, Yongqi & Zhang, Haolin & Zhang, Lei, 2025. "How monetary policies and fintech shape the peer effect of corporate financialization: Evidence from China's listed companies," International Review of Financial Analysis, Elsevier, vol. 107(C).
    2. Wenwen Li & Shuo Fang & Chenran Yan & Qian Li & Weifeng Gong & Chuanhui Wang, 2026. "Impact of corporate financialization on carbon cost efficiency of thermal power enterprises in China," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 28(1), pages 2595-2630, January.

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