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As an institutional innovation in the market-oriented reform of China's energy sector, the policy effect of energy consumption license transaction (ECPT) is still lack of research. The pilot provinces of energy market-oriented reform are relatively scattered. Therefore, this paper aims to evaluate the spillover effect and regional differences of ECPT, so as to make up for the lack of research on China's market-oriented energy reform. Results show that ECPT has inhibitory effects on energy consumption and energy intensity. In addition, ECPT can reduce energy consumption and energy intensity in neighboring areas. The policy effect of ECPT shows the characteristics of strengthening with the evolution of time. Foreign trade, industrial structure and technological progress are the paths for ECPT policies to promote energy transformation. The implementation effect of ECPT shows significant regional differences, which has a significant role in promoting the energy transformation of Henan and Sichuan. Therefore, the central government must ensure the continuity of energy market-oriented reforms to release long-term policy dividends. Pilot provinces should not only play the role of domestic regional energy-saving cooperation, but also strengthen foreign trade and technological innovation to promote energy transformation. • ECPT has an obvious inhibitory effect on energy consumption and energy intensity. • ECPT has the spillover effect of energy saving on neighboring provinces. • The long-term effects of ECPT are stronger than the short-term effects. • Foreign trade, industrial upgrading and technological progress are the mechanisms. • The effect of ECPT shows significant heterogeneity in different pilot provinces. [ABSTRACT FROM AUTHOR]