Abstract:Research on the impact of carbon trading policy on carbon emission efficiency of China’s steel industry is conducive to the green and low-carbon development of steel industry as well as the construction and improvement of the national carbon trading market. Undesirable-SBM model is used to measure carbon emission efficiency of steel industry. Then, difference-in-differences method is employed to investigate the impact of carbon trading policy on carbon emission efficiency of steel industry. Regional heterogeneity and influencing mechanism are investigated respectively. The results show that: carbon trading policy has a significant and continuous promoting effect on carbon emission reduction in the steel industry, increasing the efficiency value of the pilot areas by 12.6% on average. However, regional heterogeneity exists, with significant effects in the eastern and western regions, but not obvious in the central region. Carbon trading policy can improve the carbon emission efficiency of steel industry by promoting technological innovation, reducing energy intensity and adjusting energy structure.