The Impact of the Carbon Emission Trading Shadow Price on the Green Total Factor Productivity of the Power Industry in China

Longtian Zhang () and Zheng Pan
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Longtian Zhang: School of Economics and Management, China University of Petroleum-Beijing, Beijing 102249, China
Zheng Pan: School of Economics and Management, China University of Petroleum-Beijing, Beijing 102249, China

Sustainability, 2024, vol. 16, issue 10, 1-20

Abstract: To mitigate the problem of global climate change, governments have taken measures to reduce greenhouse gas emissions. Carbon emission trading has gradually attracted attention as a market-oriented option. Power industry panel data from 30 provinces in China were used for an empirical analysis in this study. The super-efficiency Slack-Based Measure (SBM) model was used to calculate the shadow price of carbon trading and the green total factor productivity (GTFP), and the Ordinary Least Squares (OLS) regression model was used to quantitatively analyze the correlation between the shadow price of carbon trading and the GTFP of the power industry. The results showed that the shadow price of carbon trading had a significantly negative impact on the GTFP of the power industry; therefore, it needs to be improved and perfected. Through a further analysis using the heterogeneity test, it was found that there were problems in the current carbon trading price mechanism. In the face of the above problems, we offer suggestions for improvement from the perspectives of the government and companies. This study helps deepen the understanding of carbon trading prices and the GTFP in the power industry, and it provides a reference for formulating more effective carbon trading policies and corporate green management strategies.

Keywords: carbon emission trading; shadow price; green total factor productivity; electric power industry (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2024
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