The Impact of Energy‐Consuming Right Trading Policy on Green Technology Innovation in China

ABSTRACT China is committed to building the energy‐consuming right trading market. In this article, the impact of energy‐consuming right trading policy (ERTP) on green technology innovation (GTI) of Chinese manufacturing industry listed companies is evaluated. The results show that ERTP can significantly promote corporate GTI. ERTP could stimulate GTI of industrial enterprises, eastern enterprises, state‐owned enterprises, high‐productivity enterprises, and high‐migration costs enterprises. Tax incentives and the improvements of corporate environmental responsibility levels are important channels to promote GTI. ERTP triggers a ‘resource stacking effect’ on the basis of existing innovation activities. ERTP primarily triggers enterprise source GTI. ERTP mostly triggers substantive GTI other than strategic GTI. This article provides important empirical evidence for the improvement of China's energy‐consuming right trading system.