Cross-regional integration of renewable energy and corporate carbon emissions: Evidence from China's cross-regional surplus renewable energy spot trading pilot

Using data from A-share listed renewable energy enterprises, this study constructs a quasi-natural experiment with China's Cross-regional Surplus Renewable Energy Spot Trading Pilot policies as the shock and explores its impact on corporate carbon emissions from 2014 to 2021 using the staggered difference-in-differences (DID) model. The results indicate that the Cross-regional Surplus Renewable Energy Spot Trading Pilot can significantly reduce the carbon emissions of renewable energy enterprises in pilot regions during the sample period, demonstrating heterogeneity in regional location, ownership, and corporate social responsibility. The positive effect of the pilot is more pronounced for enterprises in the central region, state-owned enterprises, and enterprises with a high sense of social responsibility. The results remained robust when we applied propensity score matching DID, difference-in-differences-in-differences (DDD), placebo tests, alternative measures and 2SLS instrumental variable tests to further eliminate the interference from other factors. Moreover, in terms of mechanisms, the Cross-regional Surplus Renewable Energy Spot Trading Pilot can reduce corporate carbon emissions by promoting renewable energy consumption and corporate energy efficiency. This study enhances understanding of cross-regional renewable energy integration, expanding discussions on selecting trajectories for energy efficiency and emissions reduction goals in the energy sector. Our findings offer practical examples of how different regions and countries promote the integration of renewable energy markets, thereby contributing to research on renewable energy integration.