Investigating the role of emissions trading system in reducing enterprise energy intensity: Evidence from China

This paper provides retrospective enterprise-level evidence on the role of the emissions trading system (ETS) in reducing the energy intensity of China's high‑carbon enterprises. The empirical results indicate several key findings: First, in China's ETS pilot regions, the ETS has significantly reduced high‑carbon enterprises' energy intensity by 22.4 % during the sample period, which means ETS has indeed played an anticipated energy-saving effect in China. Second, the ETS has exerted a signal effect on high‑carbon enterprises outside the pilot regions, which suggests that the actual effectiveness of China's ETS may be higher than initially anticipated. Third, the energy-saving effect of China's ETS can be achieved through green technology innovation and digital transformation. Finally, the effect of China's ETS on energy intensity varies significantly by regional development, industry attributes, enterprise characteristics, and carbon market performance.