The Impact of Carbon Emissions Trading Policy on Regional Economy and Pollution Reductions in Chinese Provinces

Carbon emissions trading policy is an important tool to achieve carbon peaking and carbon neutrality goals. In order to explore the effectiveness of carbon emissions trading policy, this paper adopts the difference-in-differences model to analyze the effects of China’s pilot policy on regional econo...

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Main Authors: Hui Zhang, Xiuying Lv
Format: Article
Language:English
Published: MDPI AG 2024-11-01
Series:Atmosphere
Subjects:
Online Access:https://www.mdpi.com/2073-4433/15/11/1362
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author Hui Zhang
Xiuying Lv
author_facet Hui Zhang
Xiuying Lv
author_sort Hui Zhang
collection DOAJ
description Carbon emissions trading policy is an important tool to achieve carbon peaking and carbon neutrality goals. In order to explore the effectiveness of carbon emissions trading policy, this paper adopts the difference-in-differences model to analyze the effects of China’s pilot policy on regional economic development and pollution reductions. The results show that carbon trading policy can significantly promote economic development and reduce total carbon emissions, industrial SO<sub>2</sub> emissions and solid wastes production of pilot regions. Further research finds that there is significant regional difference in policy effectiveness, with the policy more effective in western areas. In addition to direct effects, carbon trading policy could exert an indirect effect on carbon emissions, air quality, industrial solid wastes and regional economic development by optimizing energy consumption structures and industrial structures and increasing technological investment. This result verifies the “Porter hypothesis”. China should improve the construction of national carbon trading markets, covering more industries, considering the regional differences and negative spillover effect.
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issn 2073-4433
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series Atmosphere
spelling doaj-art-478264c27ace4b35adddc9022df3dd612025-08-20T02:07:57ZengMDPI AGAtmosphere2073-44332024-11-011511136210.3390/atmos15111362The Impact of Carbon Emissions Trading Policy on Regional Economy and Pollution Reductions in Chinese ProvincesHui Zhang0Xiuying Lv1School of Environmental Science and Engineering, Nanjing Tech University, Nanjing 211816, ChinaSchool of Environmental Science and Engineering, Nanjing Tech University, Nanjing 211816, ChinaCarbon emissions trading policy is an important tool to achieve carbon peaking and carbon neutrality goals. In order to explore the effectiveness of carbon emissions trading policy, this paper adopts the difference-in-differences model to analyze the effects of China’s pilot policy on regional economic development and pollution reductions. The results show that carbon trading policy can significantly promote economic development and reduce total carbon emissions, industrial SO<sub>2</sub> emissions and solid wastes production of pilot regions. Further research finds that there is significant regional difference in policy effectiveness, with the policy more effective in western areas. In addition to direct effects, carbon trading policy could exert an indirect effect on carbon emissions, air quality, industrial solid wastes and regional economic development by optimizing energy consumption structures and industrial structures and increasing technological investment. This result verifies the “Porter hypothesis”. China should improve the construction of national carbon trading markets, covering more industries, considering the regional differences and negative spillover effect.https://www.mdpi.com/2073-4433/15/11/1362carbon emissions trading policyregional economypollution reductionsdifference-in-differences model
spellingShingle Hui Zhang
Xiuying Lv
The Impact of Carbon Emissions Trading Policy on Regional Economy and Pollution Reductions in Chinese Provinces
Atmosphere
carbon emissions trading policy
regional economy
pollution reductions
difference-in-differences model
title The Impact of Carbon Emissions Trading Policy on Regional Economy and Pollution Reductions in Chinese Provinces
title_full The Impact of Carbon Emissions Trading Policy on Regional Economy and Pollution Reductions in Chinese Provinces
title_fullStr The Impact of Carbon Emissions Trading Policy on Regional Economy and Pollution Reductions in Chinese Provinces
title_full_unstemmed The Impact of Carbon Emissions Trading Policy on Regional Economy and Pollution Reductions in Chinese Provinces
title_short The Impact of Carbon Emissions Trading Policy on Regional Economy and Pollution Reductions in Chinese Provinces
title_sort impact of carbon emissions trading policy on regional economy and pollution reductions in chinese provinces
topic carbon emissions trading policy
regional economy
pollution reductions
difference-in-differences model
url https://www.mdpi.com/2073-4433/15/11/1362
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AT huizhang impactofcarbonemissionstradingpolicyonregionaleconomyandpollutionreductionsinchineseprovinces
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