The effect of carbon emission trading scheme on energy efficiency: Evidence from China

Xiujie Tan, Yishuang Liu, Hanmin Dong and Zhan Zhang

Economic Analysis and Policy, 2022, vol. 75, issue C, 506-517

Abstract: The COVID-19 pandemic has caused a global economic recession and even changed its development pattern. Improving energy efficiency has become one of the best choices worldwide to achieve green recovery in the post-COVID-19 era. Therefore, this study explores the effect of carbon emission trading scheme (ETS) pilots on energy efficiency by the difference-in-differences (DID) model, using panel data of 30 Chinese provinces from 2009 to 2020. The following results are obtained: (1) Carbon ETS pilots could significantly increase energy efficiency by an overall effect of 1.82%, among which technical efficiency might be improved more obviously than others; (2) The average effect of carbon ETS pilots may differ between provinces because of some economic-regional factors, being more significant in regions with a large number of employees and high wages; (3) This positive effect is transferred through industrial structure and R&D investment.

Keywords: Carbon emission trading scheme; Energy efficiency; Green recovery; Sustainable development (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (20)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecanpo:v:75:y:2022:i:c:p:506-517

DOI: 10.1016/j.eap.2022.06.012

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