The Impact of Carbon Risk on Value Creation of High-Carbon-Emission Enterprises: Evidence from China

Based on the Cost Theory and Porter’s Hypothesis, this study focuses on high-carbon-emission enterprises and systematically explores how carbon risk affects their value creation. The sample comprises listed firms in high-carbon-emission industries listed on China’s Shanghai and Shenzhen A-shares during 2012–2022. A carbon risk measurement index is constructed using industrial energy consumption data, and a two-way fixed-effects model is employed to empirically test the relationship between carbon risk and value creation of these enterprises. Further, the internal mechanisms by which debt financing costs and innovation R&D expenditures influence the impact of carbon risk on enterprise value creation are analyzed separately. Finally, differences in the inhibitory effect of carbon risk on value creation across heterogeneous enterprises are examined. The results show that carbon risk significantly reduces value creation. It raises debt financing costs and diverts resources away from innovation, weakening firms’ capacity to create value. The negative effect is stronger for small firms, non-state-owned firms, and younger firms. The findings provide evidence for policymakers to improve carbon pricing mechanisms, for financial institutions to better assess climate risk, and for firms to develop effective carbon risk management strategies. Overall, the study offers practical implications for promoting a green and low-carbon transition in the real economy.