Research on the Impact of Carbon Emission Trading Market on Regional Economic Development: A Case Study of East China

Abstract

This article delves into the impact of carbon emission trading mechanism on regional economy, especially in East China, and focuses on analyzing how this mechanism promotes green transformation and high-quality development of the economy by influencing green technology innovation of enterprises. Research has found that carbon emission trading not only incentivizes companies to reduce greenhouse gas emissions, but also guides capital and technological innovation to flow towards low-carbon areas through market mechanisms, thereby promoting the optimization of industrial structure and sustainable economic development. This article also discusses the impact of different quota allocation methods on green innovation in enterprises, pointing out that the benchmark method can more effectively stimulate the innovation drive of enterprises compared to the historical method. Therefore, according to the research findings, it is necessary to improve the construction of carbon markets, scientifically formulate quota allocation systems, avoid negative impacts on early green innovation enterprises, and provide policy support to reduce innovation costs for enterprises.