EXPLORING THE INFLUENCE OF CHINA’S CARBON TRADING MARKET ON CARBON EMISSION REDUCTION AND FIRMLEVEL TOTAL FACTOR PRODUCTIVITY

This paper investigates firms in China's carbon trading market from the viewpoint of production efficiency.It is found that the carbon emission trading mechanism significantly improves the total factor productivity (TFP) of carbon emission control firms, but this mechanism has no positive spillover effect, and the TFP of non-carbon emission control firms does not change significantly.The positive effect of the carbon emission trading mechanism on TFP is more evident when initial carbon quotas are partially auctioned, the benchmark method is used, non-contractual parties trade actively, product market competition is high, and the market pricing power of firms is relatively low.In addition, the carbon emission trading mechanism significantly reduces the degree of resource misallocation in carbon emission control firms and improves the green production input and technological innovation output.This paper reveals the microeconomic effects of the development of China's carbon trading market from the perspective of firm production efficiency.The research conclusions are significant for constructing a national unified carbon trading market and advancing the green development strategy.