Can the Carbon Emission Trading Scheme Influence Industrial Green Production in China?

Guang Chen () and Akira Hibiki
Additional contact information
Guang Chen: Graduate School of Economics and Management, Tohoku University, Sendai 980-8577, Japan

Sustainability, 2022, vol. 14, issue 23, 1-22

Abstract: Emission trading schemes are effective methods to realize the sustainable development of society by coordinating economic development and environmental protection. While green total factor productivity ( GTFP ), an effective evaluation index of green production, involves both economic and environmental factors, which corresponds to the political and market-driven nature of ETS. This study investigated whether ETS policy could affect industrial GTFP and how it works. First, based on panel data of 278 cities from 2003 to 2017, this article first introduces industrial GTFP calculated by the SBM-GML model and EBM-GML model separately. Second, this study realizes that the implementation of ETS policy has significant and positive effects on industrial GTFP by establishing a difference-in-differences model. Third, this study reveals that the implementation of ETS policy may increase the industrial GTFP by affecting the amount of industrial labor, industrial added value, CO 2 emission, and industrial wastewater discharge. Fourth, by constructing a TFP index, this study shows that the implementation of ETS policy has no significant impact on the production efficiency of industrial enterprises. Finally, there is regional heterogeneity when studying the effect of ETS policy on industrial GTFP .

Keywords: green total factor productivity; slacks-based measure model; epsilon-based measure model; global Malmquist–Luenberger index; emission trading scheme; difference-in-differences method (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://www.mdpi.com/2071-1050/14/23/15829/pdf (application/pdf)
https://www.mdpi.com/2071-1050/14/23/15829/ (text/html)

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:gam:jsusta:v:14:y:2022:i:23:p:15829-:d:986565

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().