Examining the Impact and Influencing Channels of Carbon Emission Trading Pilot Markets in China

Qiong Wu, Kanittha Tambunlertchai and Pongsa Pornchaiwiseskul
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Qiong Wu: Faculty of Economics, Chulalongkorn University, 254 Phayathai Road, Pathum Wan, Pathum Wan District, Bangkok 10330, Thailand
Kanittha Tambunlertchai: Faculty of Economics, Chulalongkorn University, 254 Phayathai Road, Pathum Wan, Pathum Wan District, Bangkok 10330, Thailand
Pongsa Pornchaiwiseskul: Faculty of Economics, Chulalongkorn University, 254 Phayathai Road, Pathum Wan, Pathum Wan District, Bangkok 10330, Thailand

Sustainability, 2021, vol. 13, issue 10, 1-18

Abstract: As China has an important role in global climate change, the Chinese government has set goals to improve its environmental efficiency and performance and launched carbon emission trading pilot markets in 2013, aiming to reduce CO 2 emissions. Based on panel data of 30 provinces from 2005 to 2017, this paper uses the difference-in-difference method to study the impact of China’s carbon emission trading pilot markets on carbon emissions and regional green development. The paper also explores possible influencing channels. The main conclusions are as follows: (1) China’s carbon emission trading policy has promoted a reduction in CO 2 emissions and carbon emission intensity and has increased green development in the pilot areas. (2) The main path for China’s carbon emission trading policy to achieve carbon emission reduction and regional green development is to promote technology adoption. (3) China’s carbon emission trading policy achieves green development through synergistic SO 2 emission reduction. The pilot carbon markets have reduced both the amount of SO 2 emissions and SO 2 emission intensity.

Keywords: difference-in-difference; carbon emission trading; green total factor productivity; synergy effect (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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