The effect of carbon emissions on firm investment speed of adjustment: A literature review

Abstract

This paper employs a systematic literature review method to collect and analyze studies related to the effect of carbon emissions on the speed of corporate investment adjustment. The findings suggest that there has been a rise in the number of publications in recent years on the impact of carbon emissions on corporate investment scale and/or efficiency. These studies focus on two aspects related to carbon emissions: (i) corporate carbon emissions, and (ii) government policies on carbon emission control. However, it appears that no studies have yet examined the impact of carbon emissions on the speed of corporate investment adjustment, and there are very few studies that consider the moderating role of financial constraints and the institutional environment in this relationship. Based on this, the authors suggest several future research directions related to this research topic.