Document Type


Date of Degree Completion

Fall 2024

Degree Name

Master of Science (MS)


Cultural and Environmental Resource Management

Committee Chair

Toni Sipic

Second Committee Member

Tennecia Dacass

Third Committee Member

Sterling Quinn


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.

Available for download on Wednesday, June 20, 2029