Does carbon emission trading system promote industrial carbon productivity? Evidence from China

Yuan Yuan, Wei Wang and Yiqi Zhao

International Journal of Low-Carbon Technologies, 2025, vol. 20, 1966-1978

Abstract: By using the data of 30 provinces in China from 2010 to 2020, we take the carbon emission trading pilot (CETP) policy as a quasi-natural experiment to test the effect of carbon emission trading system (CETS) on industrial carbon productivity (ICP). We find that CETP boosts ICP, stimulating green innovation and eliminating high energy consumption industry are two influence channels. The boosting effect of CETP policy on ICP has heterogeneity. Besides, CETP has a positive spillover effect on ICP. Our study provides guidance for policymakers to optimize CETS and improve ICP.

Keywords: carbon emission trading system; industrial carbon productivity; multiperiod DID; influence mechanism; heterogeneity analysis (search for similar items in EconPapers)
Date: 2025
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