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Energy Carbon Emission Reduction and Carbon Neutrality: The Uncertainty Path

A special issue of Sustainability (ISSN 2071-1050). This special issue belongs to the section "Energy Sustainability".

Deadline for manuscript submissions: 31 December 2026 | Viewed by 630

Special Issue Editors


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Guest Editor
School of Economics and Management, Southeast University, Nanjing 211189, China
Interests: environment economics; carbon emissions and economic development; regional economic innovation system; technological innovation
Special Issues, Collections and Topics in MDPI journals
Research Institute of Economics and Management, Southwestern University of Finance and Economics, Chengdu 611130, China
Interests: resource and environmental economics; climate policy; climate risk; corporate environmental governance; climate mitigation and adaptation

Special Issue Information

Dear Colleagues,

The global pursuit of carbon neutrality has triggered far-reaching transformations in climate policy, regulatory systems, and corporate strategy. Yet, this green transition is unfolding along an uncertain and uneven path—regulatory frameworks continue to evolve in response to shifting global climate norms, domestic institutional experimentation, and rising demands for energy decarbonization. Meanwhile, firms—especially in emerging economies—face complex decisions under policy uncertainty, technological disruption, and environmental performance pressure.

This Special Issue addresses the institutional, strategic, and socioeconomic dynamics shaping the uncertain journey toward carbon neutrality. It focuses on how climate and energy policy uncertainty influences regulatory change, corporate environmental investment, green innovation, export performance, and broader development outcomes. It also examines how governments and firms adapt to climate risks, manage transition trade-offs, and respond to domestic and international policy shifts.

Special emphasis is placed on the heterogeneous and sometimes contradictory impacts of the green transition across sectors. While environmental regulation and carbon reduction goals aim to foster sustainability, they may also impose adjustment costs, innovation frictions, or productivity slowdowns—especially in sectors undergoing rapid digitalization or structural transformation. These “growth drag” effects highlight the tension between long-term climate objectives and short- to medium-term industrial competitiveness, raising critical questions about the design of balanced and adaptive regulatory pathways.

We welcome interdisciplinary submissions that adopt legal, institutional, empirical, or comparative perspectives. Suitable topics include, but are not limited to, the following:

  • The impact of international climate agreements on national regulatory frameworks (e.g., China’s legal adaptation);
  • Corporate responses to climate and energy policy uncertainty;
  • The effects of environmental investment on export competitiveness and innovation outcomes;
  • Comparative studies on how energy policy uncertainty affects poverty and inequality;
  • The role of corporate energy management in improving environmental and financial performance;
  • Sectoral analysis of growth constraints and innovation frictions in green digital transformation;
  • Risks, opportunities, and adaptation strategies in climate governance.

This Special Issue will integrate insights from climate economics, policy studies, legal analysis, and corporate strategy to illuminate the contested and uncertain nature of global decarbonization and offer actionable insights for regulators, firms, and scholars navigating the transition.

Dr. Zhengning Pu
Dr. Jiasha Fu
Guest Editors

Manuscript Submission Information

Manuscripts should be submitted online at www.mdpi.com by registering and logging in to this website. Once you are registered, click here to go to the submission form. Manuscripts can be submitted until the deadline. All submissions that pass pre-check are peer-reviewed. Accepted papers will be published continuously in the journal (as soon as accepted) and will be listed together on the special issue website. Research articles, review articles as well as short communications are invited. For planned papers, a title and short abstract (about 250 words) can be sent to the Editorial Office for assessment.

Submitted manuscripts should not have been published previously, nor be under consideration for publication elsewhere (except conference proceedings papers). All manuscripts are thoroughly refereed through a single-blind peer-review process. A guide for authors and other relevant information for submission of manuscripts is available on the Instructions for Authors page. Sustainability is an international peer-reviewed open access semimonthly journal published by MDPI.

Please visit the Instructions for Authors page before submitting a manuscript. The Article Processing Charge (APC) for publication in this open access journal is 2400 CHF (Swiss Francs). Submitted papers should be well formatted and use good English. Authors may use MDPI's English editing service prior to publication or during author revisions.

Keywords

  • carbon neutrality
  • climate policy
  • energy/climate policy uncertainty
  • climate risk and opportunity
  • environmental regulation
  • regulatory transformation
  • institutional adaptation
  • adaptation strategy
  • corporate environmental strategy
  • environmental management practice
  • international climate agreements ESG performance
  • legal adaptation
  • technology innovation
  • export performance
  • poverty and inequality
  • firm resilience
  • green transition trade-offs
  • decarbonization cost
  • environmental compliance pressure
  • digital transformation and sustainability
  • growth drag
  • structural adjustment

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Published Papers (1 paper)

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Research

22 pages, 665 KB  
Article
Preemptive Move or Wait-and-See? Climate Policy Uncertainty and Equity Financing of SRDI Enterprises in China
by Zhang Cheng, Zhiyu Chen and Yi Wei
Sustainability 2026, 18(10), 4632; https://doi.org/10.3390/su18104632 - 7 May 2026
Viewed by 242
Abstract
Rising climate policy uncertainty increases the complexity of firms’ financing decisions, particularly for Specialized, Refinement, Differential, and Innovation (SRDI) enterprises that rely heavily on external financing. Accordingly, using data on 262 SRDI firms from 2011 to 2023, this paper conducts empirical analysis to [...] Read more.
Rising climate policy uncertainty increases the complexity of firms’ financing decisions, particularly for Specialized, Refinement, Differential, and Innovation (SRDI) enterprises that rely heavily on external financing. Accordingly, using data on 262 SRDI firms from 2011 to 2023, this paper conducts empirical analysis to systematically examine the relationship between climate policy uncertainty and SRDI firms’ equity financing decisions. We find a significant inverted U-shaped relationship between climate policy uncertainty and the equity financing ratio of SRDI firms. When uncertainty is low to moderate, firms are more inclined to raise the proportion of equity financing to preemptively lock in capital; however, as uncertainty rises further, valuation discounts and financing frictions intensify, thereby suppressing equity financing. These conclusions remain unchanged after a series of robustness checks. Mechanism tests indicate that climate policy uncertainty affects equity financing mainly through two channels: higher debt financing costs and lower firm value. The former encourages substitution from debt-to-equity financing, whereas the latter suppresses equity financing by increasing its implicit costs. Further heterogeneity analyses show that this effect is more pronounced among private firms, firms in more highly concentrated industries, and firms with weaker risk resilience. Our findings inform innovative firms’ financing decisions and sustainable development under climate policy uncertainty. Full article
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