The study looked at how China's carbon trading system affects CO2 emissions and economic growth in energy-intensive industries. By analyzing data from different levels like provinces and companies, the researchers found that the trading scheme helps lower emissions without harming output. This means that businesses become more efficient in producing goods while reducing their carbon footprint. The study also showed that companies increased their R&D spending after joining the carbon trading market. Overall, the findings suggest that the carbon trading system in China is effective in reducing emissions, but achieving both lower CO2 levels and economic growth together may need new technologies to support it.