Pilot Policy of Carbon Emission Rights Trading and Enterprise Green Innovation

This study explores the impact of Chinas pilot carbon emission trading scheme (ETS) on corporate green innovation using a difference-in-differences approach, with data from A-share listed companies spanning 2010-2021. It examines whether the policy drives green patent applications and the mediating role of public attention. Results indicate that the pilot ETS significantly promotes corporate green innovation, with a stronger effect on state-controlled enterprises. Public attention partially mediates this relationship, as the policy enhances public scrutiny, which in turn stimulates firms green innovation. These findings highlight the effectiveness of market-oriented environmental policies and the role of non-market forces in advancing sustainable development. Based on the research findings, it is suggested to promote enterprises to accelerate green transformation, so as to help achieve carbon emission reduction and sustainable development goals.