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Does carbon emission trading system induce enterprises’ green innovation?

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  • Deng, Haiyan
  • Zhang, Wenjia
  • Liu, Dan

Abstract

To control total carbon emissions and achieve the emission reduction target, the Chinese government has implemented the carbon emission trading system (CETS), which has been applied in two provinces and five cities since 2013. This study uses the environmental regulation policy of the pilot CETS as a quasi-experiment to investigate whether the implementation of this environmental policy induces green innovation among enterprises. This study employs a difference-in-differences model to conduct an empirical test using green patent data of A-share listed enterprises from 2002 to 2018. The results indicate that the CETS pilot-policy-induced green invention innovation in enterprises. Notably, compared with non-state-owned enterprises, the pilot policy is more conducive to promoting green innovation in state-owned enterprises.

Suggested Citation

  • Deng, Haiyan & Zhang, Wenjia & Liu, Dan, 2023. "Does carbon emission trading system induce enterprises’ green innovation?," Journal of Asian Economics, Elsevier, vol. 86(C).
    • Handle: RePEc:eee:asieco:v:86:y:2023:i:c:s1049007823000179
    DOI: 10.1016/j.asieco.2023.101597
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    References listed on IDEAS

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    4. Yunhui Wang & Rong Zhou, 2024. "Can carbon emission trading policies promote the withdrawal of government subsidies and the green development of enterprises? Empirical evidence from China’s A-share market," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-16, December.
    5. Li, Haichao & Su, Yuqi & Ding, Chante Jian & Tian, Gary Gang & Wu, Zhan, 2024. "Unveiling the green innovation paradox: Exploring the impact of carbon emission reduction on corporate green technology innovation," Technological Forecasting and Social Change, Elsevier, vol. 207(C).
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    7. Fei, Jinhua & Pu, Zhengning & Tavera, Christophe, 2024. "The power of patent transfer: The impact of green technology acquisition on non-residential CO2 emissions under the intervention of government actions," Journal of Asian Economics, Elsevier, vol. 94(C).
    8. Dong, Xiaotian & Wang, Kai-Hua & Tao, Ran & Sorana, Vătavu & Moldovan, Nicoleta-Claudia, 2024. "Is there a relationship between climate policy uncertainty and green finance? Evidence from bootstrap rolling window test," Economic Analysis and Policy, Elsevier, vol. 82(C), pages 277-289.
    9. Haibo Sun & Shuguang He & Nan Cheng & Zhonglu Liu, 2024. "Climate transition risk and enterprise default probability," Business Strategy and the Environment, Wiley Blackwell, vol. 33(8), pages 8929-8945, December.
    10. Deng, Wenyueyang & Zhang, Zenglian & Guo, Borui, 2024. "Firm-level carbon risk awareness and Green transformation: A research on the motivation and consequences from government regulation and regional development perspective," International Review of Financial Analysis, Elsevier, vol. 91(C).
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