eng Science and Education Publishing Journal of Finance and Economics 2328-7276 2017-12-19 5 6 310 315 10.12691/jfe-5-6-7 JFE2017567 article Kun LUO olivelk@163.com 1 Rendao YE 2 Alibaba Business College, Hangzhou Normal University, Hangzhou, China College of Economics, Hangzhou Dianzi University, Hangzhou, China The Clean Development Mechanism (CDM) with financial incentives and technical transfer brings about potential improvement in the efficiency of Chinese enterprises' low-carbon technology innovation. Based on DEA models and data of industrial enterprises, we assess the efficiencies and their improvement under CDM. We then estimate the effects of CDM on the probability of efficiency improvement using a logit model. The effects of CDM on the improvement rate are also estimated. It is found that the undertaking of CDM would benefit Chinese enterprises to achieve more significant efficiency improvement in their low-carbon technology innovation, by raising not only the probability but also the rate of efficiency improvement. http://pubs.sciepub.com/jfe/5/6/7/jfe-5-6-7.pdf clean development mechanism (CDM) low-carbon technology innovation efficiency improvement DEA