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The Impact of China's Carbon Trading Market on Industrial Economic Development
- 1 Department of Business School, China University of Political Science and Law, China
* Author to whom correspondence should be addressed.
Abstract
This paper takes the establishment of China's carbon trading market as the research background and adopts a multi-period difference-in-differences (DID) model to explore its impact on regional industrial economic development. It further analyzes the mediating role of green innovation and regional heterogeneity. The study reveals the following findings: The establishment of the carbon trading market has significantly improved the level of regional industrial economic development. By reducing carbon emission costs and enhancing enterprise efficiency, it has improved corporate operating performance. The impact of carbon trading policies exhibits significant regional heterogeneity. The central and western regions, which have weaker economic foundations, benefit more significantly, while the eastern region, with its higher level of economic development, experiences relatively smaller policy effects. Green innovation plays a crucial mediating role in the transmission mechanism through which the carbon trading market affects industrial economic development. The carbon trading market incentivizes enterprises to engage in green technology research and development, thereby enhancing resource utilization efficiency and indirectly boosting corporate operating performance. This study not only provides empirical support for the effectiveness of carbon trading policies but also highlights the pivotal role of green innovation in promoting economic green transformation.
Keywords
carbon trading market, green innovation, financial performance, heterogeneity analysis, difference-in-differences model
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Cite this article
Zhang,S. (2025).The Impact of China's Carbon Trading Market on Industrial Economic Development.Advances in Economics, Management and Political Sciences,160,58-67.
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Volume title: Proceedings of the 4th International Conference on Business and Policy Studies
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