Has the Carbon Trading Pilot Market Improved Enterprises’ Export Green-Sophistication in China?

This study empirically examined the effect of a carbon trading pilot market on export green-sophistication of Chinese listed enterprises by adopting a difference-in-difference method. Findings show that a carbon trading pilot market can improve enterprises’ export green-sophistication after using robustness tests to overcome endogeneity. The impact mechanism test shows that a carbon trading pilot market can improve export green-sophistication by increasing green technology innovation. Further research on the system design of carbon trading pilot markets shows that the greater the total carbon quota allocation, the larger the reduction in the trading volume of Chinese certified emissions. Furthermore, the weaker the punishment for an enterprise’s default in the pilot areas, the less favorable it is for enterprises to improve their export green-sophistication. Compared with the grandfather and historical intensity methods, benchmarking used in the allocation of carbon quotas is conducive to the improvement of the export green-sophistication of enterprises.