Taylor FrancisclimatepolicyClimate PolicyISSN:1469-3062 (Print)1752-7457 (Online)Journal homepage:www.tandfonline.com/journals/tcpo20Enterprise responses to China's nationalemissions trading system:evidence from anationwide surveyBaixue Wang,Yifei Quan Maosheng DuanTo cite this article:Baixue Wang,Yifei Quan Maosheng Duan(28 Nov 2025):Enterpriseresponses to China's national emissions trading system:evidence from a nationwide survey,Climate Policy,D0:10.1080/14693062.2025.2591879To link to this article:https://doi.org/10.1080/14693062.2025.2591879View supplementary materialPublished online:28 Nov 2025Submit your article to this journalArticle views:175aView related articlesView Crossmark data☑Full Terms Conditions of access and use can be found athttps://www.tandfonline.com/action/journallnformation?journal Code=tcpo20CLIMATE POLICYTaylor Francishttp5s/doi.og/10.1080/14693062.2025.2591879Check for updatesEnterprise responses to China's national emissions trading system:evidence from a nationwide surveyalnstitute of Energy,Environment and Economy,Tsinghua University,Beijing,People's Republic of China;PLee Kuan Yew Schoolof Public Policy,National University of Singapore,Singapore,SingaporeABSTRACTARTICLE HISTORYAs the world's largest emissions trading system (ETS)by covered emissions,China'sReceived 22 March 2025national ETS has undergone three compliance periods,yet empirical evidence onAccepted 13 November 2025its effectiveness remains scarce.Based on a nationwide survey,we provide the firstcomprehensive ex-post evaluation of the system's impacts on regulated enterprisesKEYWORDSCarbon market;enterpriseby examining their responses and attitudes.The evaluation covers key dimensionsbehaviour;allowanceincluding allowance allocation and compliance,trading behaviour and bankingallocation;trading;strategies,emissions accounting and reporting,and emission reduction actions.qualitative surveyOur findings reveal distinct differences between allowance-deficit and allowance-surplus enterprises in trading strategies,economic performance,and mitigationefforts.The ETS significantly improves enterprises'emissions data accuracy andtheir carbon management capabilities.Nevertheless,despite increasing compliancepressures due to progressively stringent benchmarks,trading activity remainslargely compliance-driven,with block trading within corporate groups prevailing.These patterns hinder market liquidity and undermine the ETS's role in effectiveprice discovery.These findings not only provide critical insights for improvingChina's national ETS design but also offer broader lessons for other jurisdictionscontemplating carbon pricing instruments.Key policy insightsPolicy uncertainty,including delays in publishing allocation plans and unclearrules regarding allowance validity,increases risk aversion among enterprises,which in turn weakens the effectiveness of China's national ETS.Block trading significantly restricts market liquidity and undermines the ETS's pricediscovery function,highlighting the need for more transparent and regulatedtrading mechanisms.The rate-based ETS imposes compliance costs on enterprises with allowancedeficits,leading to distinct differences in trading strategies,economicperformance,and emissions mitigation measures between surplus and deficitenterprises.Despite the adoption of carbon management and mitigation actions,85%ofenterprises remain unaware of their marginal abatement costs,limitinginformed decision-making and market participation.A comprehensive approach that goes beyond the design of the national ETS isnecessary to enhance its effectiveness and efficiency.1.IntroductionEmissions trading system(ETS)has become a widely adopted policy tool for mitigating greenhouse gas(GHG)emissions globally.As of 2024,36 ETSs are in operation worldwide,doubling in number over the past decadeCONTACT Maosheng Duan duanmsh@mail.tsinghua.edu.cn Tsinghua University,Beijing 100084,People's Republic of ChinaSupplemental data for this article can be accessed online at https://doi.org/10.1080/14693062.2025.2591879.2025 Informa UK Limited,trading as Taylor Frandis Group