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Article

Emission Trading System, Carbon Market Efficiency, and Corporate Innovations

by 1, 1 and 2,*
1
Economics and Management School, Changsha University of Science and Technology, Changsha 410114, China
2
Shanghai National Accounting Institute, Shanghai 201702, China
*
Author to whom correspondence should be addressed.
Academic Editor: Zhengning Pu
Int. J. Environ. Res. Public Health 2022, 19(15), 9683; https://doi.org/10.3390/ijerph19159683
Received: 17 July 2022 / Revised: 1 August 2022 / Accepted: 4 August 2022 / Published: 5 August 2022
Taking China’s emission trading system (ETS) pilot in 2013 as a quasi-natural experiment, this paper uses the difference-in-differences (DID) models to study whether the regional pilot ETS can promote technological innovation in enterprises. In addition, this paper examines the influence mechanism of the ETS innovation effect, with a focus on three key dimensions of the carbon market efficiency: market price effectiveness, market product diversity, and market order normativity. The results show that the pilot ETS has significantly promoted the technological innovation of regulated enterprises, specifically, 1.405*** for the total R&D investment, and 2.783*** for the number of patent applications. Moreover, the regional carbon price has a positive moderating effect on the innovation effect of ETS. Meanwhile, the innovation effect is more significant when the gap between the carbon price and the marginal abatement cost (MAC) of CO2 is smaller, when the carbon financial derivatives are more abundant, or when the local market supervision is stronger. This study provides empirical evidence for the improvement of the national unified market and provides useful policy implications for developing countries to design ETS suitable for their national conditions. View Full-Text
Keywords: carbon market efficiency; technological innovation; difference-in-difference model; impact mechanism carbon market efficiency; technological innovation; difference-in-difference model; impact mechanism
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MDPI and ACS Style

Zhu, R.; Long, L.; Gong, Y. Emission Trading System, Carbon Market Efficiency, and Corporate Innovations. Int. J. Environ. Res. Public Health 2022, 19, 9683. https://doi.org/10.3390/ijerph19159683

AMA Style

Zhu R, Long L, Gong Y. Emission Trading System, Carbon Market Efficiency, and Corporate Innovations. International Journal of Environmental Research and Public Health. 2022; 19(15):9683. https://doi.org/10.3390/ijerph19159683

Chicago/Turabian Style

Zhu, Rui, Liyu Long, and Yinghua Gong. 2022. "Emission Trading System, Carbon Market Efficiency, and Corporate Innovations" International Journal of Environmental Research and Public Health 19, no. 15: 9683. https://doi.org/10.3390/ijerph19159683

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