Carbon mitigation effects and potential cost savings from carbon emissions trading in China's regional industry
Ning Zhang () and
Technological Forecasting and Social Change, 2019, vol. 141, issue C, 1-11
China began a pilot carbon emissions trading scheme (ETS) in 2013. However, the real carbon mitigation effects of this policy are unclear. Moreover, the potential cost savings from internal or external trading among provinces are also uncertain. Based on panel data of 30 provincial industries from 2006 to 2015, this paper first employs a difference-in-differences model to explore the effects of the pilot ETS on industrial carbon emissions and carbon intensity. A Stochastic Frontier Analysis is then conducted to measure industrial energy efficiency and identify any carbon mitigation effects. We next use a parameterized directional output distance function to estimate the industrial carbon marginal abatement costs and analyze the potential cost savings/gains from internal trading among provinces within the same geographical regions and from external trading across regions. Results show that: (a) the pilot ETS has significant negative effects on industrial carbon emissions (10.1%) and carbon intensity (0.78%). (b) Energy efficiency plays an important role in the carbon mitigation effects. (c) the distribution of marginal abatement cost (MAC) shows significant geographical characteristics. (d) Provinces can realize greater potential cost saving/gains through regional external trading than internal trading.
Keywords: Carbon mitigation effects; Potential cost savings; Carbon emissions trading (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:tefoso:v:141:y:2019:i:c:p:1-11
Access Statistics for this article
Technological Forecasting and Social Change is currently edited by Fred Phillips
More articles in Technological Forecasting and Social Change from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().