Abstract
This paper examines the market distortions in the energy sector of Hainan Province, China, and their impact on the green transformation of its manufacturing industry. We analyze the existing market distortions in energy factors, including improper allocation of energy resources, distorted energy prices, energy subsidy policies, inadequate energy efficiency management, and imperfect regulations and supervision mechanisms. We also discuss the specific impact of these market distortions on innovation efficiency, natural resource endowment, energy price distortion, energy subsidy policies, energy efficiency management, environmental protection, ecosystem impact, talent training, technological innovation, international competitiveness, and social and economic benefits. Finally, we provide policy recommendations to address these challenges and promote the green transformation of Hainan's manufacturing industry.
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