The Impact of State-Owned Capital Participation on Carbon Emission Reduction in Private Enterprises: Evidence from China

Carbon emission reduction serves as a pivotal strategy for advancing global environmental quality and sustainable socioeconomic development. Private enterprises serve as the primary contributors to industrial carbon emissions. Their low-carbon transition is directly tied to the achievement of China’s Dual Carbon Goals. However, constrained by market failures and the profit-driven nature of capital, these enterprises face significant challenges in both motivation and capacity for carbon emission reduction. As a critical link connecting government and market forces, whether state-owned capital can effectively drive private enterprises to reduce emissions and conserve energy still lacks systematic empirical evidence. Leveraging a panel dataset of private industrial listed companies on China’s Shanghai and Shenzhen A-share markets spanning 2008–2022, we examine the impact of state-owned capital participation on carbon emission reduction and the underlying mechanisms. The empirical results demonstrate that state-owned capital participation can significantly drive carbon emission reduction and propel the low-carbon transformation of private enterprises. Mechanism analysis reveals that state-owned capital participation promotes carbon emission reduction through multiple avenues, including enriching the green resource base, strengthening the value recognition of environmental social responsibility, and improving energy efficiency. Further analysis indicates that the emission reduction effect of state-owned capital participation is more pronounced under conditions of weaker government environmental regulation, lower regional marketization, greater industry competition, and tighter green financing constraints. This study enriches the research on mixed-ownership reform and low-carbon transition of enterprises, deepens the theoretical understanding of the internal mechanism of state-owned capital participation affecting carbon emission reduction, and offers empirical evidence for emerging economies to address the dilemma of emission reduction through property rights integration.