Cultural, Economic, or Transport Link: Does Carbon Emissions Trading Promote “Good Neighbor” Carbon Emission Reduction?

Chong Zhuo, Yaobin Liu, Ling Dai and Yuyang Deng ()
Additional contact information
Chong Zhuo: School of Population and Health, Renmin University of China, Beijing 100872, China
Yaobin Liu: School of Economics and Management, Nanchang University, Nanchang 330031, China
Ling Dai: School of Social Development and Public Policy, Fudan University, Shanghai 200433, China
Yuyang Deng: College of Business, Shanghai University of Finance and Economics, Shanghai 200433, China

Land, 2024, vol. 13, issue 11, 1-19

Abstract: Carbon emission reduction was a crucial objective for China’s green transformation, yet establishing regional cooperation with neighboring areas posed a significant challenge in carbon governance. We investigated the spillover effects of carbon emissions trading (CET) on carbon emissions among Chinese cities, employing spatial difference-in-differences (DID), Callaway and Sant’Anna DID (CSDID), and other methodologies. Our paper integrated datasets on high-speed rails, dialects, and carbon emissions at the prefecture-level city scale. The findings revealed that (1) CET reduces emissions by 11.55% in pilot regions, although the impact of the second policy pilot was not significant. (2) In terms of spillover effects, CET increased emissions in neighboring cities with economic and geographic ties, creating a “beggar-thy-neighbor” reduction model. Conversely, it reduced emissions in cities with shared cultural ties, fostering a “good neighbor” reduction model. (3) The policy spillover effect exhibited an “inverted N” curve, first decreasing, then increasing, and finally decreasing as economic and geographic distance increased. (4) Technological advancement was identified as the primary mechanism driving the spillover effects of CET. To achieve the dual-carbon goal, avoiding harmful economic competition and promoting low-carbon cultural exchanges were essential.

Keywords: carbon emissions trading; spillover effects; spillover boundaries; dialectal cultural distance; spatial DID (search for similar items in EconPapers)
JEL-codes: Q15 Q2 Q24 Q28 Q5 R14 R52 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/2073-445X/13/11/1762/pdf (application/pdf)
https://www.mdpi.com/2073-445X/13/11/1762/ (text/html)

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:gam:jlands:v:13:y:2024:i:11:p:1762-:d:1507321

Access Statistics for this article

Land is currently edited by Ms. Carol Ma

More articles in Land from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().