Is carbon emission trading policy a panacea? The implications of promoting green total factor productivity

Zhangting Hui and Chang Hwan Choi

Asian-Pacific Economic Literature, 2024, vol. 38, issue 2, 42-55

Abstract: Market‐based environmental regulation is crucial in influencing environmental and socioeconomic development. Carbon emission trading (CET) policy in China has been implemented since 2012 to balance the environment and economy, especially the green total factor productivity (GTFP). Most previous studies have only conducted short‐term investigations on the impact of CET on environmental and socioeconomic development. In this study, we investigated panel data from 30 regions in China during 2003–2019, adopted the Global Malmquist‐Luenberger and Super‐SBM methods to measure GTFP, and employed the propensity score matched difference in difference (PSM‐DID) to investigate the effect of CET policy on the environment, GTFP, and secondary industry output. The results indicate that CET policy has a positive influence on carbon emission reduction, contributes to the improvement of GTFP, and provides economic value. Therefore, we believe that CET policy can effectively help China to achieve a win‐win scenario of environmental protection and economic growth.

Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://doi.org/10.1111/apel.12418

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:apacel:v:38:y:2024:i:2:p:42-55

Ordering information: This journal article can be ordered from
https://ordering.onl ... 7-8411&ref=1467-8411

Access Statistics for this article

Asian-Pacific Economic Literature is currently edited by Yixiao Zhou

More articles in Asian-Pacific Economic Literature from The Crawford School, The Australian National University
Bibliographic data for series maintained by Wiley Content Delivery ().