THE POLICY EFFECT OF CARBON EMISSIONS TRADING ON GREEN TECHNOLOGY INNOVATION — EVIDENCE FROM MANUFACTURING ENTERPRISES IN CHINA

Based on the panel data of listed Chinese manufacturing enterprises from 2007 to 2019, this study uses the difference-in-differences-based propensity score matching method (PSM-DID) to explore the policy effect of carbon emissions trading on green technology innovation in manufacturing from the perspective of independent innovation of enterprises. The conclusions of this study show that: (1) Carbon emissions trading has significantly improved the level of green technology innovation of manufacturing enterprises; (2) the policy effect of carbon emissions trading on the green patent application is more than twice as much as on green utility model patent application. Compared with green utility model patent, the pilot policy of carbon emissions trading has a more significant and greater policy effect on the green invention patent application; (3) the private enterprises are more sensitive to the pilot policy of carbon emissions trading than state-owned enterprises (SOEs). The carbon emissions trading in China effectively promotes low-carbon and green development of enterprises.