Author(s)

Anqi Wang ¹

Affiliation(s)

¹ Central University of Finance and Economics, Beijing, China

Corresponding Author

Anqi Wang

ABSTRACT

The carbon emission trading system is a crucial mechanism for China to participate in global climate governance and achieve its carbon peak and carbon neutrality goals. Using a sample of A-share high-carbon industry listed companies from 2011 to 2020, this study employs a difference-in-differences (DID) model to examine whether the establishment of pilot carbon emission trading markets effectively incentivizes corporate green innovation. The findings provide insights for the further implementation of a national carbon emission trading market in China. Empirical results reveal that: (1) The implementation of the carbon emission trading policy significantly increases corporate green innovation, promoting both high-quality and low-quality innovation; (2) The policy fosters green innovation by increasing firms' expected returns; (3) Further analysis indicates heterogeneous effects, with the impact being more pronounced in state-owned enterprises, firms receiving higher government subsidies, and those with greater media attention.

KEYWORDS

Carbon Emission Trading Market; Green Innovation; Environmental Regulation

CITE THIS PAPER

Anqi Wang, The Impact of Carbon Emission Trading on Corporate Green Innovation: Evidence from High-Carbon Listed Companies in China. Industrial Engineering and Innovation Management (2025) Vol. 8: 83-98. DOI: http://dx.doi.org/10.23977/ieim.2025.080111.

REFERENCES

[1] Lin Boqiang. China's High-quality Economic Growth in the Process of Carbon Neutrality[J]. Economic Research Journal, 2022, 57(01): 56-71.
[2] Shen Hongtao, Huang Nan. Will the Carbon Emission Trading Scheme Improve Firm Value?[J]. Finance & Trade Economics, 2019, 40(01): 144-161.
[3] Huang Zhibin, Zhang Tao. Analysis on Enterprises' Green Technology Innovation and Its Obstruction Factors[J]. Studies in Dialectics of Nature, 2018, 34(08): 129-133.
[4] Zhang W, Li G, Guo F. Does carbon emissions trading promote green technology innovation in China?[J]. Applied Energy, 2022, 315: 119012.
[5] Shen Chen, Lin Peina. Study on the Characteristics and Market Risks of the Carbon Emissions Trading Pilot Market in China[J]. Industrial Economic Review, 2017, 8(04): 123-134.
[6] Chen Xiaohong, Wang Zhiyun. Empirical Research on Price Impact Factor of Carbon Emission Exchange: Evidence from EU ETS[J]. Systems Engineering, 2012, 30(02): 53-60.
[7] Liu Haiying, Guo Wenqi. Carbon Emission Trading Policy Pilot and Energy-Environmental Efficiency: An Empirical Study of 287 Prefecture-Level Cities in China[J]. Journal of Xi'an Jiaotong University (Social Sciences), 2022, 42(05): 72-86.
[8] Mei Xiaohong. On the Influence of China's Carbon Finance Market on Regional Economic Structure—Based on the Panel Data Econometric Model[J]. Journal of Technical Economics & Management, 2015(01): 108-111.
[9] Du Li, Li Bo. Adjustment and Upgrading of Industrial Structure by Utilizing Carbon Financial System[J]. Economist, 2012(06): 45-52.
[10] Liu Ye, Zhang Xunchang. Carbon Emission Trading System and Enterprise R&D Innovation: An Empirical Study Based on Triple Difference Model[J]. Economic Science, 2017(03): 102-114.
[11] Yang Qiulin, Liu Jie, Tang Yang. R&D Investment, Carbon Emission Trading, and Enterprise Performance—Empirical Evidence from A-share Listed Companies in Carbon Trading Pilot Provinces and Cities[J]. Communication of Finance and Accounting, 2023(01): 60-65.
[12] Wei Lili, Ren Liyuan. Can Carbon Emissions Trading Promote Enterprise Green Technological Innovation—Based on the Perspective of Carbon Price[J]. Lanzhou Academic Journal, 2021(07): 91-110.
[13] Hu Jun, Huang Nan, Shen Hongtao. Can Market-Incentive Environmental Regulation Promote Corporate Innovation?—A Natural Experiment Based on China's Carbon Emissions Trading Mechanism[J]. Journal of Financial Research, 2020(01): 171-189.
[14] Song Deyong, Zhu Wenbo, Wang Banban. Micro-empirical Evidence Based on China's Carbon Trading Companies: Carbon Emissions Trading, Quota Allocation Methods and Corporate Green Innovation[J]. China Population, Resources and Environment, 2021, 31(01): 37-47.
[15] Chen Z, Zhang X, Chen F. Do carbon emission trading schemes stimulate green innovation in enterprises? Evidence from China[J]. Technological Forecasting and Social Change, 2021, 168: 120744.
[16] Li Chuang, Wang Zhijia, Wang Liping. The Impact of Carbon Emission Trading Policy on Firms' Green Technology Innovation: Based on Instrumental Variables and Triple Difference Test[J]. Science of Science and Management of S.& T., 2023, 44(05): 15-33.
[17] Zhou Mao, Lu Yi, Du Yan, et al. Special Economic Zones and Region Manufacturing Upgrading[J]. China Industrial Economics, 2018(03): 62-79.
[18] Zhang M, Yan T, Gao W, et al. How does environmental regulation affect real green technology innovation and strategic green technology innovation?[J]. Science of The Total Environment, 2023, 872: 162221.
[19] Mei Linhai, Cui Wanling. Research on the Impact Mechanism of Carbon Emission Trading System on Enterprise Green Innovation[J]. Industrial Economic Review, 2023, 14(04): 38-58.
[20] Yang Zhen, Chen Jin, Ling Hongcheng. Media Attention, Environmental Policy Uncertainty and Firm's Green Technology Innovation: Empirical Evidence from Chinese A-Share Listed Firms[J]. Journal of Industrial Engineering and Engineering Management, 2023, 37(04): 1-15.

Sponsors, Associates, and Links

---

• Information Systems and Economics
  
  
• Accounting, Auditing and Finance
  
  
• Tourism Management and Technology Economy
  
  
• Journal of Computational and Financial Econometrics
  
  
• Financial Engineering and Risk Management
  
  
• Accounting and Corporate Management
  
  
• Social Security and Administration Management
  
  
• Population, Resources & Environmental Economics
  
  
• Statistics & Quantitative Economics
  
  
• Agricultural & Forestry Economics and Management
  
  
• Social Medicine and Health Management
  
  
• Land Resource Management
  
  
• Information, Library and Archival Science
  
  
• Journal of Human Resource Development
  
  
• Manufacturing and Service Operations Management
  
  
• Operational Research and Cybernetics