Carbon Pricing Induces Innovation: Evidence from China's Regional Carbon Market Pilots

Jingbo Cui, Junjie Zhang and Yang Zheng

AEA Papers and Proceedings, 2018, vol. 108, 453-57

Abstract: China has launched seven regional pilots of emission trading scheme (ETS) to limit its carbon emissions. Taking advantage of the variations in the regional ETS pilots across regions and sectors and over time, we employ a difference-in-difference-in-differences (DDD) approach to evaluate the effect of ETS on low-carbon innovation at the firm level. Using patent application data of publicly-listed firms in China between 2003 and 2015, we find that the ETS pilots induced innovation in low-carbon technologies. The more active pilots—measured by carbon price and turnover rate of allowance trading—are associated with more intense low-carbon innovation.

JEL-codes: D22 O13 O31 O34 P28 P31 Q52 (search for similar items in EconPapers)
Date: 2018
Note: DOI: 10.1257/pandp.20181027
References: Add references at CitEc
Citations: View citations in EconPapers (42)

Downloads: (external link)
https://www.aeaweb.org/doi/10.1257/pandp.20181027 (application/pdf)
https://www.aeaweb.org/articles/attachments?retrie ... 5fYzteXyyFg0YOwjIiq4 (application/zip)
https://www.aeaweb.org/articles/attachments?retrie ... edHklKrY5f2hvq6Wm5Ft (application/pdf)
https://www.aeaweb.org/articles/attachments?retrie ... cc1yu-SMzR9fh7mQbz6p (application/zip)
Access to full text is restricted to AEA members and institutional subscribers.

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:aea:apandp:v:108:y:2018:p:453-57

Ordering information: This journal article can be ordered from
https://www.aeaweb.org/subscribe.html

Access Statistics for this article

AEA Papers and Proceedings is currently edited by William Johnson and Kelly Markel

More articles in AEA Papers and Proceedings from American Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Michael P. Albert ().