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Volume 3,Issue 8

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26 September 2025

A Study Based on Quasi-Natural Experiment with Double Difference Method: Can Carbon Trading Policies Improve Firms’ Green Total Factor Productivity?

Song Wu1 Di Wang*
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1 School of Accounting, Beijing Wuzi University, Tongzhou District, Beijing 101126, China
LNE 2025 , 3(8), 245–251; https://doi.org/10.18063/LNE.v3i8.854
© 2025 by the Author. Licensee Whioce Publishing, Singapore. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution 4.0 International License ( https://creativecommons.org/licenses/by/4.0/ )
Abstract

With the continuous development of society and economy, climate change has attracted widespread attention from all sectors. Currently, China is in a critical period of coordinating development and environmental governance, and carbon trading policies are advancing steadily. Against this background, whether carbon trading policies can promote the improvement of enterprises’ green total factor productivity has become a hot issue. Based on this question, this study verifies and analyzes through a quasi-natural experiment using the difference-in-differences method, and explores targeted suggestions and countermeasures, aiming to provide a reference for relevant personnel and jointly contribute to the realization of the “dual carbon” goals and the promotion of green development.

Keywords
Carbon trading policies
Green Total Factor Productivity (GTFP)
Green innovation capability
Financing efficiency
Difference-in-differences method
Funding
Beijing Social Science Fund Youth Project, “Research on Financing Strategies for Green Supply Chains in Beijing under the Background of Digital Economy” (Project No.: 22JJC026)
References

[1] Li L, 2024, The Impact of Carbon Trading Policies on the Quality of Enterprises’ Green Technological Innovation, thesis, Shijiazhuang Tiedao University.

[2] Ma T, 2024, Research on the Impact of Carbon Trading Policies on China’s Industrial Green Transformation, thesis, Qingdao University of Technology.

[3] Zhu Y, 2024, Research on the Impact of Carbon Trading and Energy Use Rights Trading on Industrial Green Total Factor Productivity, thesis, South China University of Technology.

[4] Yang X, 2024, Research on the Impact of China’s Carbon Trading Policies on Green Total Factor Productivity, thesis, Southwest Petroleum University.

[5] Ma Z, Xu X, 2024, How Does Carbon Trading Affect Green and Low-Carbon Development? An Empirical Study Based on Multi-period DID and Continuous DID. Science and Management, 44(2): 44–51.

[6] Liu L, Dai Y, 2023, Research on the Impact of China’s Carbon Trading on Enterprises’ Carbon Emissions Under the Dual Carbon Goals. Journal of Qingdao Agricultural University (Social Science Edition), 35(2): 51–57.

[7] Liang J, Li J, 2023, Has Carbon Trading Improved Urban Green Total Factor Productivity? Shanghai Journal of Economics, 2023(3): 97–114.

[8] Xing H, Jiang Y, Chen Y, 2022, Carbon Trading and Manufacturing Green Total Factor Productivity Under the “Dual Carbon” Goals —— Mechanism Test Based on Heterogeneous Technological Innovation Modes. Science & Technology Progress and Policy, 39(23): 76–86.

[9] Sun Z, Gu W, Cheng X, 2022, Research on the Impact Mechanism of Carbon Trading on Green Total Factor Productivity. East China Economic Management, 36(4): 89–96.

[10] Ren Y, Fu J, 2019, Research on the Emission Reduction and Green Development Effects of Carbon Trading. China Population, Resources and Environment, 29(5): 11–20.

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