Document Type
Thesis
Date of Degree Completion
Fall 2024
Degree Name
Master of Science (MS)
Department
Cultural and Environmental Resource Management
Committee Chair
Toni Sipic
Second Committee Member
Tennecia Dacass
Third Committee Member
Sterling Quinn
Abstract
Addressing climate change and its regulatory implications presents significant challenges for businesses. Yet, uncertainty persists regarding the effectiveness of companies' emission reduction endeavors. This study aims to investigate the impact of carbon pricing policies, including carbon taxes and Emission Trading Systems (ETSs), on companies' Environmental, Social, and Governance (ESG) ratings, specifically the environmental rating, and corporate carbon emissions. I estimate a fixed-effect regression model to analyze the impact of carbon pricing policies on corporate environmental scores and carbon emissions using Institutional Shareholder Services (ISS) data. The results show that carbon pricing significantly improves corporate ESG ratings and reduces carbon emissions. However, in examining the environmental pillar alone, I note that only ETS prices significantly improve corporate performance. This result suggests ESG ratings reflect other factors affected by carbon prices, thereby also boosting the social and governance performance.
Recommended Citation
Mittelstaedt, Betty, "Measuring the Effectiveness of Carbon Pricing: The Impact on Corporate ESG Performance and Carbon Emissions" (2024). All Master's Theses. 1941.
https://digitalcommons.cwu.edu/etd/1941