Impact of Carbon Trading System on Green Economic Growth in China

Xin Nie, Zhoupeng Chen, Linfang Yang, Qiaoling Wang, Jiaxin He, Huixian Qin and Han Wang
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Xin Nie: School of Public Administration, Guangxi University, No 100, Da Xue Road, Nanning 530004, China
Zhoupeng Chen: School of Public Administration, Guangxi University, No 100, Da Xue Road, Nanning 530004, China
Linfang Yang: School of Public Administration, Guangxi University, No 100, Da Xue Road, Nanning 530004, China
Qiaoling Wang: School of Public Administration, Guangxi University, No 100, Da Xue Road, Nanning 530004, China
Jiaxin He: School of Public Administration, Guangxi University, No 100, Da Xue Road, Nanning 530004, China
Huixian Qin: School of Public Administration, Guangxi University, No 100, Da Xue Road, Nanning 530004, China
Han Wang: School of Public Administration, Guangxi University, No 100, Da Xue Road, Nanning 530004, China

Land, 2022, vol. 11, issue 8, 1-16

Abstract: Whether China’s economy can maintain sustainable growth has been debated both in China and internationally, and the most representative critique has been summarized in the “Krugman Query”. Faced with such doubts, how to achieve a “win-win” for economic growth and environmental protection has become one of the central objectives of local government work while striving for the new vision of development. Taking China’s carbon trading pilot policy as an example, and based on panel data of 30 provincial administrative regions in China from 2001 to 2018, this paper uses the Data Envelopment Analysis-Malmquist index model and the Propensity Score Matching-Difference in Difference method to measure the level of green economic growth from two aspects: green development mode and economic growth effect, and further explore the impact of China’s carbon trading system on green economic growth. The results show that the implementation of the carbon trading system promoted both the green development level and economic growth of pilot cities, and positively affected green total factor productivity, refuting the “Krugman Query”. Finally, the study puts forward a series of recommendations in strengthening environmental regulation, improving green technology innovation, and developing low-carbon industries.

Keywords: carbon trading system; green economic growth; data envelopment analysis-Malmquist index model; propensity score matching-difference in differences method (search for similar items in EconPapers)
JEL-codes: Q15 Q2 Q24 Q28 Q5 R14 R52 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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