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ORIGINAL RESEARCH
Impacts of Carbon Emission Trading Policy
on Enterprises’ Total Factor Productivity
in China
1
School of Economics, Qufu Normal University, Rizhao 276826, China
2
School of Economics, Dongbei University of Finance and Economics, Dalian 116025, China
Submission date: 2024-09-23
Final revision date: 2024-12-23
Acceptance date: 2025-01-03
Online publication date: 2025-02-18
Corresponding author
Weijie Zhang
School of Economics, Dongbei University of Finance and Economics, School of Economics, Dongbei University of Finance, 116025, Dalian, China
School of Economics, Dongbei University of Finance and Economics, School of Economics, Dongbei University of Finance, 116025, Dalian, China
KEYWORDS
carbon emission tradingtotal factor productivityinvestment efficiencyresearch and development levelcarbon trading price
TOPICS
ABSTRACT
The study of the impact of the carbon trading market on enterprises’ total factor productivity (TFP)
is of great significance for enterprises’ sustainable corporate development and high-quality economic
growth. This paper utilizes data from A-share listed companies from 2010 to 2020 and the difference-in-
differences method to verify the impact of carbon trading on enterprises’ TFP and its mechanisms.
The research findings indicate that carbon emission trading has significantly enhanced enterprises’
TFP, with this conclusion remaining valid even after endogenous and robustness tests. Carbon emission
trading makes corporate capital more efficient, improving TFP by enhancing research and development
and investment efficiency. For firms with low equity concentration, capital-intensive, and technology-intensive
firms, the positive effect of carbon trading on TFP is more significant, while for firms with low
equity concentration and labor-intensive firms, this impact is not significant. Finally, the carbon trading
price has a regulatory effect; that is, the high price is not conducive to improving enterprises’ TFP by
carbon emission trading. These findings theoretically enrich the research results of the carbon trading
market and practically provide new perspectives and theoretical support for promoting the development
of the carbon market and proposing policies for sustainable corporate development.
CONFLICT OF INTEREST
The authors declare that they have no known competing financial interests or personal relationships that could have appeared to influence the work reported in this paper.
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