Can carbon emission trading policy promote enterprise green management innovation?

In the context of China's "dual carbon" goals, whether carbon emission trading, as a typical market-based environmental regulation instrument, can promote corporate green management innovation has become an important topic of academic inquiry. Based on panel data of Chinese listed enterprises from 2008 to 2022, this study investigates the effect of the carbon emission trading policy on green management innovation and explores the underlying transmission mechanisms. The estimated results show that (1) the carbon emission trading policy significantly promotes green management innovation among enterprises, and this effect remains robust after a series of sensitivity tests; (2) mechanistically, the policy facilitates green management innovation primarily by reducing managerial myopic behavior and increasing access to green credit; and (3) the policy exerts a stronger effect on enterprises with environmentally experienced executives, higher managerial capability, higher carbon intensity, greater industry competition, and larger scale. The findings provide empirical evidence that enhancing green innovation can support the green and low-carbon transition of enterprises in developing countries.