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Energy Transition and Systemic Enterprise Upgrading: The Role of Carbon Markets, Digitalization, and Financing Constraints

Author

Listed:
  • Ao Yue

    (School of Law, Chongqing University, Chongqing 400044, China)

  • Jingtao Chen

    (School of Law, Chongqing University, Chongqing 400044, China)

  • Yana Di

    (School of Marxism, Chongqing University of Science and Technology, Chongqing 401331, China)

  • Longsheng Wu

    (Department of Social Sciences and Policy Studies, The Education University of Hong Kong, Hong Kong 999077, China)

Abstract

Achieving net-zero emissions requires balancing decarbonization with sustained enterprise development. Using panel data on China’s A-share listed firms from 2011 to 2023, this study examines whether regional carbon emission trading rights (CETR) pilots promote enterprise upgrading, proxied by the New Quality Productive Forces (NQPF) index. A staggered multi-period difference-in-differences framework shows that the CETR policy significantly increases enterprise NQPF (coefficient 0.059, p < 0.05). This finding remains robust after parallel trend tests, placebo simulations, propensity score matching, controlling for overlapping environmental policies, and using alternative outcome measures. Channel analyses indicate that CETR affects NQPF through two pathways: easing financing constraints (coefficient −0.019, p < 0.01) and accelerating digital transformation (coefficient 0.102, p < 0.01). The positive policy effect is stronger among non-state-owned enterprises and among firms whose senior managers lack financial backgrounds or do not hold concurrent positions in shareholder units. These results demonstrate that carbon trading drives systemic enterprise upgrading via resource and technology channels, with important heterogeneity across ownership and governance structures.

Suggested Citation

  • Ao Yue & Jingtao Chen & Yana Di & Longsheng Wu, 2026. "Energy Transition and Systemic Enterprise Upgrading: The Role of Carbon Markets, Digitalization, and Financing Constraints," Sustainability, MDPI, vol. 18(11), pages 1-26, June.
    • Handle: RePEc:gam:jsusta:v:18:y:2026:i:11:p:5712-:d:1959871
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