The Corporate Financial Effects of Carbon Tariffs: Theoretical Evolution, Impact Mechanisms, and Research Prospects

Abstract

This paper systematically examines the impact of carbon tariffs on corporate behavior from a financial perspective. The study finds that carbon tariffs significantly influence capital structure decisions by altering corporate financing constraints and risk appetite, prompting high-emissions firms to turn to green financing channels. Furthermore, policy uncertainty strengthens firms' incentives to use financial derivatives to hedge against carbon price fluctuations and boosts clean technology Research and Development (R&D) investment. Notably, the study further reveals the moderating role of Environmental, Social, and Governance (ESG) performance: in the context of carbon tariff policies, enterprises with excellent ESG performance, by virtue of their lower environmental risk exposure, not only obtain more favorable interest rate pricing in the financing market and possess significant financing cost advantages, but also maintain greater flexibility in investment decisions, enabling them to respond more quickly to green transition opportunities. This result effectively verifies the market premium effect of green finance, that is, enterprises' environmentally friendly behaviors can be converted into tangible financial benefits.The study further reveals that firms with strong ESG performance exhibit financing cost advantages and investment flexibility under the carbon tariff environment, validating the market premium effect of green finance. These findings provide new evidence for understanding the interactive relationship between environmental regulation and corporate financial behavior.