Spillover Effects of Carbon Emission Trading on the Green Supply-Chain Finance Network

Zhoufan Yu; Huijie Tang; Ningai Leng

doi:10.70393/6a6574626d.333033

OPEN ACCESS |Research Article ||20 June 2025

Spillover Effects of Carbon Emission Trading on the Green Supply-Chain Finance Network

Zhoufan Yu

Cornell University

zy454@cornell.edu

Master's in Applied Economics and Management, Cornell University, Ithaca, New York, United States, 14850.

Huijie Tang

University of Michigan

tancredi@umich.edu

Master of Supply Chain Management, 500 S. State St, Ann Arbor, MI 48109, USA.

Ningai Leng

JPMorgan Chase

allylna219@gmail.com

Quality Sr. Specialist Ⅱ, 20855 Stone Oak Pkwy, San Antonio, TX, US, 78258.

* Corresponding Author¹: Zhoufan Yu, E-Mail: zy454@cornell.edu

Publication

Accepted 2025 June 14 ; Published 2025 June 20

Journal of Economic Theory and Business Management, 2025, 2(3), 3006-4953.

Abstract

Against the backdrop of China’s deepening “dual-carbon” strategy, this paper systematically evaluates the spillover effects of Carbon Emission Trading (CET) on the Green Supply-Chain Finance Network (GSCFN). We first construct a three-tier transmission framework—“technological innovation → financing environment → chainwide collaboration”—to reveal, in theory, how CET price signals reallocate capital and diffuse across supply-chain nodes. Using a balanced panel of 420 listed manufacturing and power-sector firms from 2015–2023 and a fixed-effects model, we find: (i) a 0.1-unit increase in CET intensity raises green patent output by 0.8–1.0 items (p < 0.05); (ii) monetising carbon assets lowers green-loan interest rates by 38–45 basis points and boosts the supply-chain collaboration index by 2.4–3.1 percentage points; (iii) carbon-price stability significantly moderates firms’ green-investment willingness, and cross-regional tests confirm heterogeneous capital flows under different ETS designs. This study extends the literature at the intersection of carbon-market externalities and supply-chain finance, offering empirical support for carbon-market design and corporate practice under the dual-carbon goal. Policy recommendations include (a) a carbon-price corridor to stabilise expectations, (b) acceptance of carbon-asset income rights as collateral, and (c) leveraging leading firms’ contractual externalities to drive upstream- and downstream-level decarbonisation. Future work could employ spatial econometrics and network models, incorporating dynamic ESG scores and on-site verification data to depict cross-chain and cross-regional diffusion speed and intensity more precisely.

Keywords

Carbon Emission Trading , Green Supply-Chain Finance , Technological Innovation , Financing Environment , Spillover Effects .

Metadata

DOI:

10.70393/6a6574626d.333033

ARK:

ark:/40704/JETBM.v2n3a01

Pages: 1-5

References: 18

Disciplines: Finance

Subjects: Corporate Finance

Cite This Article

APA Style

Yu, Z., Tang, H. & Leng, N. (2025). Spillover effects of carbon emission trading on the green supply-chain finance network. Journal of Economic Theory and Business Management, 2(3), 1-5. https://doi.org/10.70393/6a6574626d.333033

Acknowledgments

The authors thank the editor and anonymous reviewers for their helpful comments and valuable suggestions.

FUNDING

Not applicable.

INSTITUTIONAL REVIEW BOARD STATEMENT

Not applicable.

DATA AVAILABILITY STATEMENT

The original contributions presented in the study are included in the article/supplementary material, further inquiries can be directed to the corresponding author.

INFORMED CONSENT STATEMENT

Not applicable.

CONFLICT OF INTEREST

The authors declare that the research was conducted in the absence of any commercial or financial relationships that could be construed as a potential conflict of interest.

AUTHOR CONTRIBUTIONS

Not applicable.

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