Can Standard Harmonization Enhance the Enterprises’ Green Export Performance? Evidence from China

Environmental regulation has emerged as a core agenda in the latest round of international trade rule negotiations. Exploring whether the harmonization of environmental standards between countries can promote green trade is of great significance for China to align with international standards and achieve green transformation. Employing an event study and instrumental variable approach, this paper assesses the impact of standard harmonization on enterprises’ green export. The empirical results demonstrate that standard harmonization contributes approximately 7.4% to the growth of green exports, with the extensive and intensive margins accounting for 1.7%, 5.7% increase respectively. Mechanism analysis reveals that standard harmonization primarily promotes exports through two channels: green innovation and quality signaling effect. Notably, the positive impact of standard harmonization is reinforced by low-carbon city pilot and environmental inspection initiatives. Furthermore, standard harmonization also improves the persistence of green export relationships, particularly for long-duration engagements. The paper elucidates the mechanism by which standard harmonization affects green export, and provides insights for the Chinese government to accelerate the green and low-carbon transformation.