Have China’s Regional Carbon Emissions Trading Schemes Promoted Industrial Resource Allocation Efficiency? The Evidence from Heavily Polluted Industries at the Provincial Level

Based on the data of A-share listed companies in China, this paper examines how China’s regional carbon emissions trading scheme (ETS) affects resource allocation efficiency provincial heavily polluted industries through DID method. The empirical results show that ETSs have reduced TFP dispersion enterprises industry, thus improving industries’ efficiency. heterogeneity analysis shows more significantly promoted with high competition and external financing dependence, while policy effects low dependence are less significant. Further mechanism that, one hand, flow capital resources from low-TFP to high-TFP enterprises. On other improve a higher degree than enterprises, which reduces among different industry. In addition, market share restricted entering market, raises threshold for new market.