Energy-use rights trading, technological innovation, and green transformation of energy-intensive manufacturing enterprises

Weijie Zhang and Bowen Li

Economic Analysis and Policy, 2025, vol. 86, issue C, 528-544

Abstract: This study investigates the influence and mechanisms of energy-use rights trading (EURT) on the green transformation of energy-intensive manufacturing firms, using data from A-share energy-intensive companies between 2011 and 2021. Employing the difference-in-differences (DID) approach, the study shows that EURT significantly enhances green transformation of energy-intensive manufacturing firms within pilot regions. This finding remains robust after a series of robustness tests, such as parallel trend, alternative measurements, PSM-DID, DDD, placebo, simultaneous policy exclusion test and IV. Mechanism exploration indicates that EURT promotes green technological innovation and digital technological innovation of energy-intensive manufacturing companies through green patent applications increase, energy-saving and waste reduction technologies development, and digital patents growth, underlying technology and scene driven technology enhancement, thus fostering their green transition. Heterogeneity analysis reveals that EURT catalyzes the green transformation of non-state-owned enterprises, larger firms, enterprises in pilot with better policy implementation such as Zhejiang province, firms in eastern areas, and enterprises of capital-intensive industry more efficiently. This research offers empirical support for improving green evolution of energy-intensive manufacturing firms from the improvement of EURT, innovation of green technology and digital technology.

Keywords: Energy-use rights trading; Green transformation; Energy-intensive manufacturing enterprises; Green technology innovation; Digital technology innovation (search for similar items in EconPapers)
JEL-codes: N7 O13 P28 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecanpo:v:86:y:2025:i:c:p:528-544

DOI: 10.1016/j.eap.2025.03.052

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