Can energy-consuming rights trading promote green continuous innovation in enterprises? The moderating role of digitization

Tingyu Zhang and Zhengning Pu

Energy Economics, 2025, vol. 149, issue C

Abstract: The purpose of this paper is to empirically assess the impact of China's energy-consuming rights trading (ECRT) on firms' green continuous innovation (GCI), while exploring the new opportunities brought about by enterprise digitalization. This study constructs an indicator system for GCI from three perspectives: attention effect, accumulation effect, and feedback effect, and employs the entropy method for measurement. Based on this, using data from listed manufacturing firms in China from 2011 to 2022, the study evaluates the impact of ECRT on GCI and explores the moderating effect of digitalization. The research finds that ECRT significantly enhances GCI. This finding is supported by robustness tests such as PSM-DID and double machine learning methods. Heterogeneity analysis reveals that the effect of ECRT on promoting GCI is more pronounced in samples of high energy consumption, high technology, and non-state-owned enterprises. Mechanism analysis confirms that ECRT primarily improves GCI through three pathways: inhibiting managerial myopia, increasing tax incentives, and enhancing media attention. The moderating effect underscores that enterprise digitalization enhances the contribution of ECRT to GCI. Additionally, the positive moderating effect of digitalization necessitates support from big data comprehensive experimental zones, regional judicial protection of intellectual property rights and regional financial development levels. This study provides supplementary insights for developing countries to achieve green development through environmental regulation.

Keywords: Energy-consuming rights trading; Green continuous innovation; Enterprise digitalization; Impact mechanism; Moderating effect (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:149:y:2025:i:c:s014098832500581x

DOI: 10.1016/j.eneco.2025.108754

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