Research on dual-carbon policy and enterprise financing costs in China’s power industry: Evidence from a multi-period DID model
Year: 2026
Type: article
Abstract: China’s carbon peaking and carbon neutrality agenda has changed the financing environment of power enterprises by combining emission constraints, transition investment pressure, and green financial incentives. This study examines how dual-carbon policy affects the external financing costs of A-share listed power companies from 2015 to 2023. A multi-period difference-in-differences framework is used to identify policy effects across staged policy shocks, and financing costs are evaluated from both debt and equity dimensions. The results indicate that dual-carbon policy raises financing costs on average, especially for high-carbon enterprises and private firms. The dynamic estimates show an inverted U-shaped pattern: the cost pressure increases during the early policy-adaptation stage and then weakens as firms and markets gradually adjust. Mechanism tests show that carbon-risk repricing increases risk premiums, whereas green-finance incentives and ESG improvement partly offset the financing burden. The study contributes by integrating power-industry transition pressure with capital-market pricing, distinguishing debt and equity financing responses, and clarifying heterogeneous transmission channels under the dual-carbon policy framework.
Author: Nanhang Tong
Institution: The University of Sydney
Language: English
Subfield: Finance
Domain: Social Sciences
Open Access status: hybrid
Estimated APC paid: $2,290
OpenAlex ID: W7203680818