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Evaluation of China's carbon emission trading policy from corporate innovation

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  • Lv, Miaochen
  • Bai, Manying

Abstract

Using trading data of China's seven pilot carbon emission trading markets from 2013 to 2016, we assess the effectiveness of the carbon emission trading policy from the perspective of corporate innovation. Robust results suggest both a high carbon trading price and high price volatility enhance corporate innovation, which confirms the effectiveness of carbon emission trading policy in promoting corporate carbon-reduction innovation. Our research supports the expansion of China's carbon emission trading from regional pilot projects to the national market and guides policymakers to make timely policy adjustments based on the evaluation of carbon emissions trading policy.

Suggested Citation

  • Lv, Miaochen & Bai, Manying, 2021. "Evaluation of China's carbon emission trading policy from corporate innovation," Finance Research Letters, Elsevier, vol. 39(C).
    • Handle: RePEc:eee:finlet:v:39:y:2021:i:c:s154461231931428x
    DOI: 10.1016/j.frl.2020.101565
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    References listed on IDEAS

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    Cited by:

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    3. Deng, Haiyan & Zhang, Wenjia & Liu, Dan, 2023. "Does carbon emission trading system induce enterprises’ green innovation?," Journal of Asian Economics, Elsevier, vol. 86(C).
    4. Long, Wenbin & Qu, Xin & Yin, Saifeng, 2023. "How does carbon emissions trading policy affect accrued earnings management in corporations? Evidence from China," Finance Research Letters, Elsevier, vol. 55(PA).
    5. Lin, Nan & Li, Ao & Ke, Jinjun & Yuan, Jiayue & Chen, Han, 2023. "The governance role of corporate party organization on innovation," International Review of Economics & Finance, Elsevier, vol. 84(C), pages 657-670.
    6. Liu, Yunqiang & Liu, Sha & Shao, Xiaoyu & He, Yanqiu, 2022. "Policy spillover effect and action mechanism for environmental rights trading on green innovation: Evidence from China's carbon emissions trading policy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 153(C).
    7. Lin, Xiaowei & Zhang, Qihao & Chen, Aihua & Zhang, Pengdong, 2022. "The Bright Side of Financial Constraint on Corporate Innovation: Evidence from the Chinese Bond Market," Finance Research Letters, Elsevier, vol. 49(C).
    8. Song, Malin & Zheng, Huanyu & Shen, Zhiyang, 2023. "Whether the carbon emissions trading system improves energy efficiency – Empirical testing based on China's provincial panel data," Energy, Elsevier, vol. 275(C).

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