Abstract：Based on the data collected from 223 firms in Zhejiang Province, factors affecting firms’ participation willingness in tradable emission permits (TEPs) are quantitatively analysed. The regression results indicate that government’s supportitive policies can effectively promote firm’s participation in TEPs by comparing the pressures brought by the administrative regulations. Addition to the positive impact of public supervision, managers’ awareness on TEPs is another key factor influencing firms’ participation. However, whether firm is a member of industry association does have negative impact on firms’ participation willingness. In order to implement the TPEs policy effectively, more attention should be put on relevant supporting policies such as promotion, education and training, and enhancing the positive bridge function of industry association.
