Management practices and Environmental Regulation in China

Climate Change Management ETS

Better managemened firms are responding more effectively

Ralf Martin

Recent literature has emphasized the importance of management practices for firm performance, including the environmental impact of businesses. Here we consider how variation in management quality affects the response of firms to environmental regulation, specifically the nascent Chinese Emission Trading System. We find that businesses that are better managed are more responsive to price incentives implied by carbon trading. More details here

A Grahpical Summary