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November 18, 2025SustainabilityOpen Access

Market-Based Environmental Regulation and Green Transformation of Manufacturing Enterprises: Evidence from China’s SO2 Emission Trading

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Authors

JZJiajian ZhouHYHuikai YangZLZiyang Liu

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Overview

Empirical findings reveal SO2 emission trading enhances service transformation in Chinese firms, suggesting pathways for sustainable development.

Key Points

  • SO2 emission trading promotes service transformation in manufacturing firms, pushing for greener operations.
  • Panel data analysis from Chinese manufacturing firms shows significant effects on optimizing embedded services.
  • Firms still lean towards end-of-pipe pollution measures over deep technological improvements, indicating limitations in innovation.
  • Insights from this research highlight ways to improve emission trading systems and promote sustainability effectively.

Cite This Study

Zhou et al. (2025) studied this question.

synapsesocial.com/papers/6924fee6c0ce034ddc351833https://doi.org/10.3390/su172210322
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  4. 4Industrial Enterprises' Green Transformation Path via Emission Trading: Theoretical Model and Empirical Evidence2025
  5. 5Market-based environmental regulation and carbon emission reduction: evidence from China’s carbon emission trading market2025 · 9 citations