Here, we use an input distance function approach to determine the shadow price of carbon dioxide (CO2), technical efficiency and potential for emission reductions of the industrial sectors of China and Korea, and impact of carbon trading on costs. Data from 20 industries in the manufacturing...

We examine the effects of environmental regulations on corporate environmental and financial performance, exploiting the first phase of the Korean Emissions Trading System (ETS) as an exogenous shock. We find that treated firms did not reduce their carbon emissions during the sample period, but...