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The carbon emission trading scheme (ETS), a market-based environmental regulation, is critical for in combating climate change in China. According to the Porter effect, ETS can promote green innovation, while the specific impact of carbon price on a company's green innovation, and the role of price signals, remain unclear. This study examines the impact of carbon price on green innovation, utilizing a dataset of A-share listed companies spanning from 2010 to 2020. The difference-in-differences estimation results demonstrate that carbon price significantly increases green innovation, promoting both invention patents and utility model patents. Our findings further indicate that moderating variables such as ESG disclosure, larger institutional investor shareholding, local environmental penalties, price stabilization mechanisms, and free quotas allocation can all amplify the constructive influence of carbon pricing on sustainable innovation. Moreover, heterogeneity analysis suggests that state-owned and large-scale companies, particularly those in the power sector and polluting sector, are more sensitive to price signals impacting green innovation. Additionally, we discovered a spatial externality of carbon pricing on green innovation in a radius ranging from 150 km to 300 km. This paper provides specific policy recommendations to stabilize the carbon price signal., Competing Interests: Declaration of competing interest The authors declare that they have no known competing financial interests or personal relationships that could have appeared to influence the work reported in this paper., (Copyright © 2024 Elsevier Ltd. All rights reserved.)

Wetland offset markets (WOMs) are increasingly applied worldwide as powerful tools for mitigating conflicts between wetland development and restoration. Reducing benefit uncertainty is key to promoting private restoration and introducing WOMs, which necessitates sufficient and stable price signals. Given that governments are important suppliers in WOMs, this article aims to explore the role of public offset credit (OC) supply in delivering and adjusting price signals during WOM formation and evolution. A general spatial agent-based wetland offset market model is built to simulate landowners' behavior, price dynamics, and WOM evolution under different public OC supply schemes. The results show that the spontaneous formation of WOMs is a time-consuming process. Price signals of public OCs reduce price fluctuations at the early stage of WOMs. This price stabilizing effect can cause a long-term reduction in benefit uncertainty perceived by landowners. Therefore, public OCs can facilitate WOM formation either through the supply side with high supply prices or through the demand side with low supply prices. During the entire WOM evolution process, due to landowners' readaptation, cheap public OCs can cause significant market fluctuations following the ceasing of cheap public supplies. The impacts of public OC on wetland development and restoration might change over time, and the suitability of public OC supplies under different long-term wetland management preferences was analyzed. These findings can further the understanding of the process of introducing a new market mechanism, such as WOMs, and the role of the government as a supplier. The research results provide insights for WOM practices, public restoration and OC supply scheme design, and wetland development-restoration conflict coordination., Competing Interests: Declaration of competing interest The authors declare that they have no known competing financial interests or personal relationships that could have appeared to influence the work reported in this paper., (Copyright © 2024 Elsevier Ltd. All rights reserved.)