Can the energy-consuming right transaction system improve energy efficiency of enterprises? New insights from China

Whether the energy-consuming right transaction system (ECRTS) can achieve a win–win development in economic growth and energy saving is a practical issue that needs to be tested urgently. The existing studies lack results that test the policy effect of ECRTS from the enterprise perspective. This paper uses the ECRTS implemented in 2016 as a natural experiment drawing on the relevant data of Chinese listed enterprises from 2009 to 2020. It adopts a difference-in-difference model to assess the effect of ECRTS on energy efficiency. The research finds that ECRTS improves energy efficiency of enterprises, and ECRTS can improve energy efficiency by promoting technological innovation and optimizing the efficiency of capital allocation. Further, ECRTS is more conducive to improving the energy efficiency of state-owned enterprises, enterprises with executives financial background, high pollution enterprises, and enterprises in regions with low resource endowments. Moreover, the improvement of energy efficiency can further enhance the value of enterprises after enterprises participate in ECRTS. The study provides a direct answer to the key question of whether the ECRTS policy can actually support the high-quality economic development.