Abstract
This paper examines how environmental trading affects corporate green innovation efficiency. Based on data from 2010 to 2022, this paper adopts carbon trading pilots policy as a quasi-natural experiment and employs a difference-in-difference model to explore the effects and underlying mechanisms. The findings indicate that implementing a carbon trading pilots policy can effectively improve green innovation efficiency, and the impact is achieved by alleviating financing constraints and stimulating the number of green innovation applications. The findings help to adapt environmental policies, leading to increased green innovation efficiency, resulting in a win-win situation for economic growth and environmental conservation.
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