Analyzing the Impact of Carbon Emission Trading Policies on Corporate Behavioral Responses and Supply Chain Co-opetition: A Literature Review

Jiyao Wang

doi:10.6981/FEM.202511_6(11).0027

Authors

Jiyao Wang

DOI:

https://doi.org/10.6981/FEM.202511_6(11).0027

Keywords:

Carbon Emission Trading Policy; Green Innovation; Supply Chain Coordination; Literature Review.

Abstract

This paper reviews 245 articles from Peking University Core and CSSCI journals (CNKI, 2021-2025) on China’s carbon emission trading (CET) policy and its effects on corporate behavior and supply chain coordination. Results show that the national carbon market has significantly altered the corporate operating environment. At the micro level, CET spurs green innovation through three mechanisms: easing financing constraints, transforming cost pressures, and addressing institutional legitimacy, supporting the “Porter Hypothesis” in China. Effects on corporate performance are mixed: while CET can improve financial performance and debt structures via cost savings, trading revenue, and better financing, its impact on firm value and non-financial performance remains debated. At the meso level, research focuses on supply chain coordination. To mitigate "double marginalization" caused by uneven carbon regulation across supply chains, contract mechanisms-especially cost-sharing and revenue-sharing contracts-are designed to optimize emission reduction investments and boost efficiency. Blockchain technology also supports emission reduction by improving carbon data transparency, cutting compliance costs, and enabling new collaboration models. Future research should examine heterogeneous responses in newly covered industries (e.g., steel, cement, aluminum), low-carbon transitions for SMEs, and long-term ESG effects. Further innovation is needed in contract design under dynamic carbon pricing, multi-tier supply chain coordination, and blockchain cost-benefit analysis. Policy efforts should prioritize cross-regional carbon accounting, carbon revenue recycling, and carbon financial instruments.

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