The Impact of Firm Productivity on Carbon Emissions: Evidence from Listed Companies in China

As climate change accelerates, carbon reduction is a global priority. China, as the largest emitter, faces the challenge of balancing growth and sustainability. The influence of productivity improvements on emission reduction remains a key question. This study aims to explore the impact of firm productivity on carbon emissions. By panel data regression method, the paper uses data from Chinas Shanghai and Shenzhen A-share listed companies from 2015 to 2022 to examine the relationship between enterprise productivity and carbon emission. The results show that increased productivity has significantly reduced the amount of carbon emitted per unit of output. In addition, heterogeneity analysis shows that regional characteristics play an important role on the relationship between productivity and carbon emissions, the impact in the eastern region is significantly stronger than in the central and western regions. Thus, enterprises should boost productivity through green innovation and energy optimization to reduce emissions and support sustainable development.