Exploring the Relationship between the Carbon Trading System and Corporate Environmental Governance Based on the Mediating Role of Technological Innovation

Abstract

 This study focuses precisely on the impact of the carbon trading system on corporate environmental governance, and deeply explores the mediating role of technological innovation in it. In the preparatory stage of the study, a comprehensive and systematic review of relevant theories covering carbon trading market mechanisms, corporate environmental governance systems, and technological innovation-driven theories was carried out. Based on the theoretical basis, the study proposes targeted research hypotheses. The propensity score matching-difference-in-difference method (PSM-DID) is innovatively selected, and Chinese companies participating in the carbon trading pilot are used as the core research sample. The PSM-DID method effectively avoids sample selection bias by scientifically matching the propensity scores of sample companies, and can accurately and efficiently evaluate the dynamic changes in the environmental governance level of enterprises in multiple dimensions such as environmental governance investment, pollutant emission reduction results, and green production process application before and after the implementation of the carbon trading system. ​

The results show that the implementation of the carbon trading system has a significant positive role in promoting corporate environmental governance. In addition, technological innovation has played a partial mediating effect in the path of the carbon trading system affecting corporate environmental governance. This means that the carbon trading system can not only directly encourage enterprises to increase their investment in environmental governance resources, optimize environmental management processes, and improve the level of corporate environmental governance, but also indirectly have a positive and far-reaching impact on corporate environmental governance by stimulating enterprises to carry out technological innovation activities such as energy-saving and emission reduction technology research and development and green production technology innovation. ​This research result provides a solid and powerful theoretical support and empirical basis for further improving the design of the carbon trading system, optimizing the implementation details of the system, and effectively improving the level of corporate environmental governance, which will help promote my country to take more solid steps in the journey of responding to climate change challenges and achieving green and sustainable development goals.