Research on the Effect and Path of CBAM on Green Technology Innovation in China’s High-Carbon Manufacturing Industries

Lin Yang, Zhengnan Lu and Mengsha Shen ()
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Lin Yang: School of Management, Jiangsu University, Zhenjiang 212013, China
Zhengnan Lu: School of Management, Jiangsu University, Zhenjiang 212013, China
Mengsha Shen: School of Finance & Economics, Jiangsu University, Zhenjiang 212013, China

Sustainability, 2025, vol. 17, issue 5, 1-26

Abstract: To cope with global warming, the European Union will implement the Carbon Border Adjustment Mechanism (CBAM) in 2026. CBAM may seriously affect the export of China’s high-carbon manufacturing products. To illustrate this issue, this paper uses DID for analysis, taking CBAM as a shock policy. To further explore the impact pathway, this article utilizes a high-dimensional fixed-effect model for mechanism analysis. The results are as follows: (1) CBAM stimulates the vitality of green technology innovation in the high-carbon manufacturing industry; (2) public environmental concern has a positive moderating effect on green technology innovation; (3) financial support plays a mediating role; (4) green technology innovations are more likely to be influenced by CBAM in the eastern region, the petrochemical, and nonferrous industries. Based on research findings, suggestions are as follows: (1) promote green technology innovation in high-carbon industries; (2) increase financial support for green technology innovation in high-carbon enterprises; (3) guide the public towards green and low-carbon consumption; (4) strengthen policy support for low-carbon development in the central and western regions.

Keywords: CBAM; green technological innovation; high-carbon manufacturing industries; public environmental concern; financial support (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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