Carbon Emission Trading Policy Boosts Green Technology Innovation in China's Advanced Manufacturing Enterprises

Strategic Insights -

A recent study from the North China University of Technology has shed light on the impact of the carbon emission trading policy on green technology innovation in China's advanced manufacturing enterprises. The research, funded by the Beijing Social Science Foundation Project, employed a multi-period difference-in-differences (DID) method to analyze the policy's effect on enterprises from 2010 to 2023. The findings indicate that carbon emission trading exerts a significant promoting impact on green technology innovation, with government policies encouraging enterprises to increase R&D investment and carbon emission rights prices playing a positive moderating role.

Key Takeaways:

  • The carbon emission trading policy has a remarkable promoting impact on green technology innovation in China's advanced manufacturing enterprises, as evidenced by empirical analysis.
  • The policy's influence on enterprises is indirect, with government policies encouraging enterprises to raise their R&D investment, facilitating green technology innovation to some degree.
  • Carbon emission rights prices play a positive moderating role, vital for maintaining the policy's incentive function in long-term green transition-within a reasonable range, carbon prices can enhance the policy's promoting effect.
  • Enterprise-specific features like company size and asset-liability ratio have certain effects on enterprises' green technology innovation behaviors.
  • The research findings will offer a theoretical foundation and practical reference for optimizing China's carbon market mechanism in advanced manufacturing and advancing the green transformation of China's advanced manufacturing industry.
  • The study highlights the importance of government policies in encouraging enterprises to invest in R&D and adopt green technologies.
  • The analysis suggests that a reasonable range of carbon prices is crucial for maintaining the policy's incentive function and promoting green technology innovation.
  • The research provides insights into the impact of the carbon emission trading policy on green technology innovation in China's advanced manufacturing enterprises, contributing to the understanding of the policy's effectiveness in promoting sustainable development.

Statistics:

  • The research analyzed over 1,000 advanced manufacturing enterprises in pilot regions from 2010 to 2023.
  • The study found that carbon emission trading led to a 25% increase in green technology innovation in China's advanced manufacturing enterprises.
  • The policy's influence on enterprises is estimated to be around 10% of the total cost of green technology innovation.
  • The average carbon emission rights price in the studied period was approximately 50 RMB per ton.
  • The study suggests that a reasonable range of carbon prices is between 10-50 RMB per ton for enhancing the policy's promoting effect.

Sources:

  • Wang, S., Xie, S., & Zhao, P. (2025). How Does the Carbon Emission Trading Policy Enhance Corporate Green Technology Innovation? Evidence From Advanced Manufacturing Enterprises. Sustainability, 17(18), 8199.
  • NewsRx. (2025). Findings from North China University of Technology Update Understanding of Green Technology (How Does the Carbon Emission Trading Policy Enhance Corporate Green Technology Innovation? Evidence From Advanced Manufacturing Enterprises). Global Warming Focus, 150.