Impact of U.S. trade policy uncertainty on China’s energy transition via enterprise innovation efficiency

Enterprise innovation efficiency (IE) plays a crucial role in promoting the energy transition (ET), with U.S. trade policy uncertainty (U.S. TPU) emerging as a vital factor impacting Chinese enterprise IE. This research employs the stochastic frontier analysis (SFA) model to evaluate enterprise IE. The study aims to examine the impact of U.S. TPU on ET via enterprise IE by analyzing panel data of Chinese A-share listed enterprises from 2007 to 2023. The results indicate a substantial negative effect of U.S. TPU on enterprise IE, a conclusion supported by robustness testing. The study reveals that U.S. TPU exerts a significantly negative effect on enterprises in the eastern and central regions, as well as state-owned enterprises (SOEs). In contrast, this negative impact is not statistically significant for enterprises in the western regions and non-state-owned enterprises (non-SOEs). Interestingly, polluting and manufacturing enterprises demonstrate a greater capacity to buffer the adverse effects of U.S. TPU. Moreover, the study indicates that U.S. TPU indirectly promotes enterprise IE by alleviating financing constraints, while indirectly inhibiting enterprise IE by restraining research and development (R&D). Additionally, the impact diminishes as human capital (HC) surpasses a certain threshold, leading to an inverted U-shaped relationship. Conversely, the threshold effect of U.S. TPU increases with the total asset turnover (Tat), resulting in a U-shaped relationship. This study delves into how U.S. TPU impacts enterprise IE via external heterogeneity and internal mechanisms, shedding light on how external policy uncertainty can bolster ET. Thus, it provides valuable insights into sustainable energy and economic growth.