Can Environmental Regulatory Policies Promote Green Technology Innovation of Enterprises? Based on China's Carbon Trading Pilot Policy

Huangrui Yan; Ziming Lin; Jiesi Yang

doi:10.6981/FEM.202411_5(11).0021

Authors

Huangrui Yan
Ziming Lin
Jiesi Yang

DOI:

https://doi.org/10.6981/FEM.202411_5(11).0021

Keywords:

Carbon Trading Policy Pilots; Corporate Green Innovation; Financing Constraints; R&D Investment.

Abstract

Carbon trading, encompassing greenhouse gas emissions trading, leverages market mechanisms to address emissions of carbon dioxide and other greenhouse gases. This study utilizes panel data from Chinese listed firms spanning 2009 to 2023 and applies the Difference-in-Difference (DID) panel model along with the mediation effect model to examine the impact of China’s carbon emission trading pilot policy on firms' green innovation. The findings indicate that the carbon trading policy positively influences enterprises' green technological innovation. From the perspective of enterprise type, the policy significantly promotes green technological innovation in state-owned enterprises. Regionally, the policy is particularly effective in encouraging green technological innovation among enterprises in central and western China. The implementation of the carbon trading pilot facilitates green technological innovation by alleviating financing constraints faced by enterprises.

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