RESEARCH ON THE INFLUENCE OF CARBON EMISSION RIGHT TRADING ON THE GREEN TECHNOLOGY INNOVATION OF ENTERPRISES

The paper uses China's carbon emission trading pilot as a kind of natural experiment and panel data from 2128 listed A-share manufacturing companies in Shanghai and Shenzhen from 2010 to 2021. It then uses difference-in-difference (DID) to look at how the carbon emission trading policy affects businesses' efforts to come up with new green technologies. The research shows that the carbon emission trading policy has significantly promoted the green technology innovation of enterprises, and the conclusion remains stable even after the parallel trend test, PSM-DID test, and placebo test. Furthermore, we discovered that rising carbon prices reinforce the positive role of carbon emission trading policies in promoting green technology innovation in enterprises.