<p>This study investigates the impact of trade liberalization on firm-level energy consumption. Using comprehensive data from Chinese listed companies, we employ a Difference-in-Differences (DID) methodology to analyze the effects of trade liberalization on energy consumption patterns. Our results show that trade liberalization has contributed to a significant reduction in energy consumption, primarily driven by three mechanisms: scale effects, technological advancements, and increased investments in energy-efficient practices. We observe that the effects of trade liberalization are heterogeneous, with state-owned enterprises and firms located in coastal regions benefiting more from these mechanisms than private firms and those situated in inland areas. These findings have important policy implications for managing energy demand and promoting environmental sustainability in the context of rapid economic growth. This study contributes to the literature by providing novel insights into how trade liberalization influences energy consumption and regional economic development.</p>