Can Carbon Trading Policies Promote Regional Green Innovation Efficiency? Empirical Data from Pilot Regions in China

Although the emission reduction and innovation effects of carbon emissions trading have attracted considerable interest among academics policy makers, there is a lack empirical research on how pilots in China promote regional green innovation. Therefore, we measured efficiency 30 provinces cities mainland from 2005 to 2018, using selected panel data within super-efficient SBM model that incorporated undesirable outputs. We used double differential evaluate impacts policies seven pilot regions. These were confirmed propensity score matching method. Our findings as follows. (1) The implementation has significant continuous effect promoting improving areas. (2) Carbon induces technological effects, enabling potential be realized. Regional further improved through energy substitution structural upgrading subsequently all three above effects. (3) synergy between major amplifies efficiency. Chinese government should accelerate its efforts develop improve markets, policies, actively foster achieve sustainable development.