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Fostering green technological innovation through carbon emission trading policies

Author

Listed:
  • Hu, Feifei
  • Chang, Huibin
  • Wang, Dongxue
  • Chen, Xiaowei

Abstract

This study examines the impact of carbon emission trading policies on promoting green technological innovation among A-share listed companies in China between 2007 and 2022. The results reveal that the enforcement and strict implementation of these policies have notably encouraged companies to engage in exploratory efforts and pursue innovations in green development patents. Furthermore, these policies have eased financing constraints for businesses, enabling them to allocate more resources to advancing green technology. It is worth noting that the effect is particularly significant in non-heavy polluting industries, greatly facilitating their shift towards environmentally friendly technological innovations.

Suggested Citation

  • Hu, Feifei & Chang, Huibin & Wang, Dongxue & Chen, Xiaowei, 2025. "Fostering green technological innovation through carbon emission trading policies," Finance Research Letters, Elsevier, vol. 74(C).
    • Handle: RePEc:eee:finlet:v:74:y:2025:i:c:s1544612325000625
    DOI: 10.1016/j.frl.2025.106797
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    References listed on IDEAS

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    Cited by:

    1. Chen, Songyi & Fan, Qianqian, 2025. "Can market-based environmental regulation promote corporate intelligent transformation: Evidence from the carbon emission trading system," Finance Research Letters, Elsevier, vol. 76(C).

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