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Much attention has been devoted to the economic benefits of emission trading systems (ETSs), but research concerning the SO2 ETS in China is scarce. We examine China's SO2 ETS in 2007 from the perspective of industrial sub-sectors and employ the difference-in-difference-in-difference (DDD) model to test whether the SO2 ETS can promote industrial total factor productivity (TFP). We identify whether it is the average effect or the dynamic effect of the SO2 ETS that can improve industrial TFP. The heterogeneity test results indicate that this policy has diverse influence in different regions and industries, and the effect is better in pollution-intensive industries. We also find that the policy enhances industrial TFP by promoting efficient technological innovation and capital allocation. Our findings provide evidence that supports the Porter Hypothesis and a guide for the industrialization of developing countries. Chinese policymakers should strengthen environmental enforcement, set quotas accordingly, and encourage technological innovation to improve industrial TFP. [ABSTRACT FROM AUTHOR]

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This study evaluates the efficiency of China's seven emission trading schemes (ETS) piloted in 2013. We evaluate seven pilots' overall technical and scale efficiencies and temporal dynamics during 2014–2023. We use a bootstrap correction data envelopment analysis (bootstrap-DEA), which guarantees a more accurate efficiency estimation than the traditional DEA model. The results show that the average overall (pure technical) efficiency of the seven pilot markets increased from 0.612 (0.844) in 2014 to 0.898 (0.990) in 2023. Furthermore, we document that seven ETS pilots differ remarkably in efficiency and transaction price, whilst all have shortages. Specifically, the small-scale market transaction is the main constraint effect on the average scale efficiency of the ETS. This study provides concrete recommendations for policy makers to consummate institutional designs to improve ETS efficiency. [ABSTRACT FROM AUTHOR]

This paper constructs a unique dataset of clean energy and collects firm-level green innovation data that matches it with provinces and cities. Then, this paper executes quasi-natural experiments on green innovation to examine the effects of China's emission trading policy on green innovation. Further, this paper introduces the interactive terms of the pilot time and pilot area dummy variables into the spatial Durbin model (SDM) and spatial dynamic panel model (SDPM) to construct quasi-natural experiments to examine the spatial effect. The findings confirm a negative association between the 'policy treatment effect' and green innovation. The results also indicate a significant negative association between the emissions trading policy and clean energy. Besides, the empirical results reveal a positive correlation between clean energy and green innovation; clean energy promotes green innovation in the region and the surrounding areas. This paper complements existing research and provides empirical evidence and policy implications for developing clean energy, promoting green innovation, and improving the emission trading policy. [ABSTRACT FROM AUTHOR]

The interactive behaviors, such as competition and learning between local and neighboring cities, can lead to spatial spillover effects in policy implementation. Estimating the direct, indirect, and total effects of the carbon emission trading scheme (CETS) on green innovation is crucial to clarify its role and mechanisms. This paper applies the spatial difference-in-differences model to estimate these effects using data from 278 cities in China from 2009 to 2019. The results demonstrate that the CETS implementation catalyzes green innovation in pilot cities, which supports the Porter hypothesis. However, it has a negative impact on green innovation in neighboring cities of pilot cities, with this negative impact diminishing as distance increases. Notably, the total effect of the CETS is significantly negative, indicating that the CETS's average impact on green innovation in all cities is negative. Mechanism analysis reveals that the direct and indirect effects of the CETS on green innovation are strengthened in cities with higher levels of financial development, lower financial pressure, and easier economic growth targets. Notably, in cities with high-level industrial structures, the CETS not only enhances its contribution to green innovation but also mitigates its negative impact on neighboring cities. Furthermore, this paper explores the heterogeneous effects of the CETS from the perspective of its implementation measures. [ABSTRACT FROM AUTHOR]

The emissions trading system (ETS) is one of the effective measures for energy conservation and emissions reduction, and the impact of the carbon ETS can be reflected in the willingness of enterprises to pay for carbon emissions reductions. However, there has been little research exploring the relationship between the two. Therefore, this study fills this knowledge gap by comprehensively investigating the influence of China carbon ETS policy (ETSP) on the willingness of enterprises to pay for carbon emissions reductions, and incorporates environmental awareness (EA), green technology innovation (GTI), and climate risk awareness (CRA) into the research model, thus constructing a new theoretical framework. Empirical analysis is conducted using the structural equation modeling method based on survey data from 478 Chinese enterprises. The results indicate that: (1) the China carbon ETSP can promote the willingness of enterprises to pay for carbon emissions reductions. (2) The China carbon ETSP can also promote the EA, GTI, and CRA of enterprises. (3) EA, GTI, and CRA can also promote the willingness of enterprises to pay for carbon emissions reductions. (4) Mediation effect analysis revealed that EA and CRA, respectively, play a mediating role in the influence process of the China carbon ETSP on the willingness of enterprises to pay for carbon emissions reductions. However, GTI does not have a mediating effect in this process. (5) Comparative mediation analysis found no significant differences in the mediating effects of EA and CRA. This study provides constructive practical recommendations for future carbon market mechanism construction and enterprise emission reduction policy formulation. It also offers guidance and reference for the behavioral decision‐making of enterprises in carbon market transactions, and carries practical significance and policy advocacy value. [ABSTRACT FROM AUTHOR]

The carbon emissions trading system (CETS) is a crucial market-based tool aimed at achieving the goals of “carbon peaking” and “carbon neutrality”, and plays a pivotal role in promoting the green development of the logistics industry. The green total factor productivity (GTFP) of the logistics industry is a key indicator used to measure the green development level of the logistics industry. The research on the CETS and the GTFP in the logistics industry(LGTFP) is currently lacking. Accurately assessing the impact of CETS on LGFP is crucial for improving the construction of the CETS and promoting the green transformation of the logistics industry. Utilizing a combined approach of system dynamics and econometrics, this study examines the effects of CETS on the LGFTP. In this study, the impact mechanism of CETS on the LGTFP is analyzed by constructing a causal relationship diagram using system dynamics theory. And then, we construct a multi-period differencein- difference (DID) model using panel data from 30 Chinese provinces spanning from 2010 to 2020 to verify the impact of CETS on LGTFP. The findings reveal that: (1) CETS significantly promotes LGTFP, and this conclusion is consistent even after conducting robustness tests. (2) Green technological innovation is identified as the primary influencing mechanism of CETS in enhancing LGTFP, while industrial upgrading does not play a positive mediating role, contrary to established studies. (3) Heterogeneity analysis reveals that CETS has a significant promotion effect on LGTFP in central and western regions, and resource-based provinces, but not yet in eastern regions and non-resource-based provinces. Based on the empirical analysis, we propose relevant policy recommendations to improve China’s CETS and promote the improvement of LGTFP. [ABSTRACT FROM AUTHOR]

Facing the dual pressures of the exacerbation of global climate change and the deterioration of the domestic environment caused by pollution, China has clearly adopted environmental regulatory measures to improve the climate environment. One measure is the carbon emissions trading scheme (CETS), which serves as a notable example of the country's efforts to improve the climate environment. We gathered panel data from 285 prefecture‐level cities in China from 2005 to 2018 and used the Difference‐in‐Differences (DID) model to empirically examine the synergistic effects of the CETS on carbon emissions and air pollution. The results indicate that CETS have been effective in reducing urban carbon emissions by approximately 9.8%. Additionally, the schemes have caused a simultaneous reduction in particulate matter (PM)2.5 emissions by 11.7% and sulfur dioxide (SO2) emissions by approximately 9.7%, mitigating urban air pollution in China. It demonstrates that the scheme has significant synergistic effects on carbon emissions and air pollution. To achieve synergistic effects of CETS, effective measures include reducing energy intensity and upgrading the industrial structure. The implementation of CETS had heterogeneity in different conditions, and the synergistic effect of the scheme is more significant in eastern regions, large cities, and the final industrial stage. Our findings offer innovative solutions for the integrated management of carbon emissions and air pollution and provide valuable insights for policymakers to enhance China's CETS. Integr Environ Assess Manag 2024;20:1112–1124. © 2023 SETAC Key Points: The carbon emissions trading scheme (CETS) led not only to the significant reduction by approximately 9.8% in carbon dioxide (CO2) emissions, but also effectively mitigated sulfur dioxide emissions by approximately 9.7% and particulate matter (PM)2.5 emissions by approximately 11.7%.This policy highlights the synergistic impact of reducing carbon emissions and air pollution.The effective emission reduction measures of CETS are focused on reducing energy intensity and upgrading industrial structure; the proper implementation of these measures can achieve significant synergistic emission reduction.Based on the heterogeneous analysis of the pilot scheme, the synergistic effects of the CETS are particularly significant in the eastern regions, large cities, and the final industrial stages. [ABSTRACT FROM AUTHOR]

Digital transformation, as a significant shift in optimizing enterprise resource allocation and enhancing information connectivity, offers the opportunity to stimulate the endogenous dynamics of corporate green governance. Employing a sample of 3,002 listed companies in China, a fixed-effects model, and the entropy power method to formulate a green governance index system, this study examines how digital transformation affects corporate green governance concerning carbon peaking and carbon neutrality objectives. According to these findings, the implementation of the digital transformation improves corporate green governance, each unit increase in digital transformation correlates with a 1.91% enhancement in green governance. Moreover, an examination of the mechanisms shows that green governance can be promoted by addressing information asymmetry and enhancing operational efficiency. Additionally, the association between corporate green governance and digital transformation is moderated favorably by strategic aggressiveness. Furthermore, our results indicate that digital transformation contributes significantly to the advancement of green governance within enterprises located in areas with high digital financing and strong technology integration capacities. Digitalization has a stronger effect on promoting green governance for enterprises in pilot regions than in non-pilot regions in terms of carbon emission trading. This study not only assists enterprises in elucidating the developmental trajectory of digital transformation amid carbon peaking and carbon neutrality goals but also provides a reference for decision-making on how digital technology can empower corporate green governance and promote sustainable economic growth. [ABSTRACT FROM AUTHOR]

Carbon emissions trading policies play a crucial role in facilitating the transition to high-end products within high-carbon enterprises. Nevertheless, current empirical analyses of the carbon emissions trading market exhibit a lack of precision and are susceptible to bias in their findings. Limited research has been conducted on the influence of product quality as a potential constraint on the impact of carbon trading on product bargaining power. This study presents a double-difference model utilizing data on emission-control enterprises in China's carbon market to examine the influence of the carbon emissions trading mechanism on the bargaining power of high-carbon products. Empirical analysis is conducted using financial data from listed companies in China spanning the years 2010 to 2020. The findings indicate that the implementation of carbon emissions trading policies has a dampening impact on the product bargaining power of high-carbon enterprises. Moreover, carbon emissions trading policies have heterogeneous effects on the product bargaining power of high-carbon firms with different life cycles, with mature high-carbon firms receiving a boost and declining high-carbon firms receiving a dampening effect. Mechanism test finds that the incomplete transmission effect of cost shocks resulting from carbon emissions trading policies has negatively affect the product bargaining power of high-carbon enterprises. Further research finds that product quality is a key factor in determining the effect of the carbon emissions trading policy, and that the impact of the carbon emissions trading policy on the bargaining power of products of high-carbon firms takes on a "U" shape due to product quality. Once the product quality exceeds the bottleneck value of 0.5956, the policy significantly increases the bargaining power of products. The study confirms that the establishment of carbon markets can effectively increase the bargaining power of superior products. These results offer a comprehensive theoretical and practical foundation for nations to advance the development of carbon markets and facilitate the achievement of sustainable development by high-carbon enterprises. [ABSTRACT FROM AUTHOR]

Facing the double constraints of the "double carbon" target and high-quality economic development, carbon trading policy is an important tool for realizing the emission reduction commitment; based on the perspective of microenterprises, the specific mechanism and spatial effect of carbon trading policy still need to be evaluated. Taking China's carbon emissions trading pilot as a quasi-natural experiment, this paper empirically investigates the impact of carbon trading policy on the carbon emission intensity of pilot enterprises and its mechanism of action, and its impact on the carbon emission intensity of neighboring enterprises, based on the multi-temporal double-difference model, moderating effect model, and spatial Durbin model with the A-sharelisted enterprises in the period of 2009-2019 as the samples. It is found that: 1) Carbon trading policy will reduce the carbon emission intensity of enterprises to different degrees, and there are significant differences under different ownership types, degrees of marketization and the level of digitization. 2) Under the influence of environmental uncertainty, ESG disclosure will weaken the effectiveness of carbon emission reduction in the pre-pilot stage of the policy; with the gradual improvement of the carbon trading policy and ESG disclosure mechanism, ESG ratings will positively regulate the inhibitory effect of the carbon trading policy on the carbon emission intensity of enterprises through multiple paths. 3) Carbon trading policy effectively reduces multiple negative spillovers through the demonstration effect and competition effect of neighboring enterprises, driving the carbon emission reduction behavior of non-pilot enterprise. The research in this paper enriches the research paradigm of carbon emission intensity influencing factors, provides reference suggestions for the government to improve its policies, and better contributes to the realization of the "dual-carbon" vision in China as soon as possible. [ABSTRACT FROM AUTHOR]

China is constantly seeking rapid, high-quality growth in order to meet its carbon peaking and neutrality goals. Approximately 40% of China's carbon emissions come from the electric power industry, which is beset by issues of poor efficiency and excessive emissions. Thus, it is essential to determine if environmental restrictions increase economic benefits total factor productivity while still preserving the environment. We use the Quasi-DID method to examine the impact of carbon emissions trading scheme on firm-level total factor productivity of electric power companies. The findings demonstrate the following: (1) carbon emissions trading scheme considerably impedes total factor productivity development; (2) the primary cause of this detrimental impact is the need for additional improvements in marketization since green innovation is still in its infancy; (3) additional study indicates that law enforcement's heterogeneity is what affects this restriction. Our research may both enhance the Chinese carbon emissions trading scheme's effectiveness assessment framework and point out several potential avenues for high-quality growth. [ABSTRACT FROM AUTHOR]

The Chinese government aims to balance employment stabilization and emissions reduction when it initiates an emissions trading scheme (ETS) to control carbon emissions. However, the policymakers should not neglect the role of imperfectly competitive market structure and market power from incumbent firms. In view of this, classical framework of Berman and Bui's (2001) is extended in this paper to clarify the theoretical mechanism of employment effect of the ETS considering firm-level market power. In addition, based on the firm-level panel data from 2008 to 2019 of China, the employment effect of each pilot ETS is measured with the method of difference-in-difference-in-differences. Then a moderating effect model is established to verify the role of firm-level market power on the heterogeneous employment effect among the pilot ETSs. Moreover, the employment effect is further decomposed to evaluate the influential mechanism from the perspective of firms' strategic behavior. It is found that there is negative employment effect of China's ETS policy, due to the significant moderating role of firm-level market power. This decrease in labor demand is mainly dominated by a negative output effect rather than a positive substitution effect because strategic allowance sellers with stronger market power tend to hire fewer employees to reduce carbon emissions by controlling production scale. However, the heterogeneity of policy effects resulted by market structure is also identified in different pilot regions. Employment dividend has been found in Beijing and Tianjin where strategic allowance buyers manipulate the carbon market and hire more employees to consolidate their market power. Therefore, policymakers should improve the design of the ETS to overcome the adverse employment effect duo to the region-specific market structure. [ABSTRACT FROM AUTHOR]

Fossil-based natural resources are carbon-intensive, and over-reliance on them often leads to persistent high carbon emissions at national or regional levels, resulting in the carbon curse. Based on the panel data of 114 resource-based cities in China from 2007 to 2020, this paper examines the carbon curse and solutions for these cities from the perspectives of total and intensity of carbon emissions. The results show that: Firstly, due to the different stages of urban development, resource endowment, degree of resource dependence, and policy background, there is a heterogeneity of carbon curse in China's resource-based cities. Secondly, the carbon emission trading policy can effectively mitigate the carbon curse in China's resource-based cities, and the robustness tests demonstrate the validity of this finding. Thirdly, under the carbon emission trading policy, industrial structure upgrading and digital transformation can play a secondary moderating role in resolving the carbon curse in resource-based cities, further strengthening the inhibitory effect of the carbon emission trading scheme on the carbon curse. In contrast, green technology innovation exhibits no enhancement in the impact of the policy. These findings contribute to the existing research on the carbon curse, offering valuable insights and policy implications for effectively addressing this challenge. [ABSTRACT FROM AUTHOR]

Although both the carbon emission trading market (CETM) and government regulatory actions promote companies' green technology innovation (GTI), little research has considered whether such innovation is substantial. In this paper, we categorize companies' GTI strategies into substantial innovation and strategic innovation. Considering market powers, the heterogeneity of companies, and the mutual influence of governments and companies, we construct a tripartite evolutionary game model that involves large and small companies and the government and conduct a simulation utilizing data on China's CETM. Our findings reveal that carbon trading prices, innovation subsidies, and the government's verification mechanism are the main factors that affect companies' choices regarding substantial innovation. However, the current carbon trading prices in China are relatively low, and companies are still likely to choose strategic innovation. Moreover, we find that when the substantial innovation of large companies exerts a greater impact on the product revenues of small companies, small companies are more inclined to choose substantial innovation. Therefore, in an effort to induce companies to choose substantial innovation, the CETM should play the leading role in this situation, and the government should implement different innovation subsidies and improve the verification mechanism. [ABSTRACT FROM AUTHOR]

Emissions trading scheme (ETS) is a market-oriented measure to promote green transition. In order to determine systemic risk among ETS pilots and industrial supply chain in China, this study applies a financial network approach on a system consisting of 7 emission allowances and 27 commodities. The empirical findings confirm that ETS poses transition risks to industrial supply chain by creating new information channels between emission allowances and commodities. Such channels are generated by the extensive financial connections within the ETS-commodity system. The degree of financial connection dynamically responds to shocks from institutional events of ETS, transaction adjustments for commodities, and extreme risk event like COVID-19. Analysis of connection structure shows that most of the products within the ETS-commodity system differ in the ability to generate financial connections. The bidirectional connection feedbacks between them and their connectors exhibit asymmetry. Several centrality indicators also screen out systemically important products from multiple scales. The findings could have policy implications for related authorities, manufacturers and investors. [ABSTRACT FROM AUTHOR]

Investigating the impact of carbon emissions trading policy and elucidating the underlying mechanisms are crucial for enhancing policy effectiveness and refining related systems. This study examines the impact of carbon emissions trading policy by constructing a difference-in-difference model utilizing unbalanced panel data from China's provinces spanning the period from 2005 to 2019. Additionally, a mediating effect model is employed to delve into the underlying mechanisms. The key findings are as follows: Firstly, the implementation of carbon emissions trading policy has a notable inhibitory impact on carbon emissions. Secondly, both the upgrading of industrial structure and the reduction of energy intensity play mediating roles in carbon emissions reduction. However, the development of clean energy industries does not exhibit a significant mediating effect. In conclusion, this study offers policy recommendations aimed at facilitating carbon reduction. These include enhancing the market-based trading mechanism for carbon emissions, optimizing and upgrading industrial structures, fostering innovation in green and low-carbon technologies, and promoting the development and utilization of clean energy. [ABSTRACT FROM AUTHOR]

With the emergence of climate-themed trade measures, it is increasingly crucial to promote the globalization of China's national carbon emissions trading system (C-ETS) with Chinese characteristics in a proactive, systematic, and orderly manner. Existing studies have largely focused on 'point-to-point' responses to international pressure and/or on the construction of a domestic carbon ETS primarily for institutional self-sufficiency. Altogether, the current literature may fail to sufficiently inform authorities, particularly on how to effectively address the urgent need to safeguard economic and trade interests and, further, on how to systematically accommodate the strategic need to enhance low-carbon competitiveness for the future and to assume a more active role under future global governance. Therefore, this study analyzes the three major challenges faced by the C-ETS systematically and, from the interdisciplinary perspectives of law and economics, identifies the theoretical nature and guiding principles of globalizing the C-ETS. Furthermore, based on an analysis of institutional background (i.e., international law and associated carbon-themed guidelines) and practical basis (i.e., associated domestic and international practices and the status quo of carbon-themed global competitions), this study evaluates the technical feasibility, legal compatibility, economic co-benefits, and political desirability of various paths, identifies key areas and low-carbon standards, and further proposes three-stage paths. Ultimately, this study finds that:(1) From the perspective of climate trade policy linkages, the key to globalizing the C-ETS is to leverage China's economic and trade influences to systematically promote low-carbon standards thereof. (2) Differing from international practices, e.g., those of the EU, China's globalization emphasizes the dynamic interaction between climate justice and mitigation efficiency to better balance domestic and global interests as well as climate pledges and domestic industrial competitiveness. (3) Significant differences exist in the goals, implementing entities, and paths of globalization across different fields of mandatory and voluntary ETSs, intersections of trade and climate change mitigation, and mechanisms for sharing carbon costs. Altogether, this study provides theoretical rationale and policy suggestions for public actors at the national, regional, and city levels, particularly as to taking a more prominent role in future global climate governance. It further lays a theoretical foundation for private actors, such as Chinese enterprises, industry associations, and financial institutions, to engage in soft-law-governed global carbon governance. [ABSTRACT FROM AUTHOR]

This paper uses green innovation and environmental pollution as the mediating variables to construct a mediating effect model to investigate whether China's carbon emission trading policy can improve regional eco-efficiency by reducing regional environmental pollution and stimulating green innovation. This study is based on panel data from 30 provinces and municipalities directly under China's central government and autonomous regions from 2003 to 2019. The eco-efficiency of these provinces is measured using the super-efficiency DEA model and the difference-in-difference method (DID). The results show that (1) China's emission trading policy significantly improves regional ecological efficiency and the per capita GDP. The improvement can effectively improve regional ecological efficiency. (2) The mediating effect of green innovation and environmental pollution is significant. That is, China's carbon emission trading policy further improves regional ecological efficiency by stimulating more green innovation and reducing the synergy brought by environmental pollution. (3) There are differences in the feedback of this impact mechanism between different regions: It shows the characteristics of the western region being more significant than the eastern region. The central region has no significant effect. The research conclusion can provide a policy reference for the subsequent unified promotion of the construction of a carbon emission trading market nationwide and a theoretical basis for helping to achieve the "dual carbon" goal. [ABSTRACT FROM AUTHOR]

Green and low carbon reflect the high-quality development, while income distribution is an indicator of the balance of development. Is there a lack of fairness in the process of green and low carbon transition of enterprises? Using data from A-share listed companies from 2009 to 2016, this paper constructs a DID identification framework for controlling the endogeneity problem using the 2013 carbon trading policy pilot as a quasi-natural experiment to empirically test the impact of corporate low-carbon transformation on corporate labor income share in the context of carbon trading policy. The findings indicate that carbon trading policy decreases the labor income share of firms. In addition, we demonstrate that the low-carbon transition promotes labor productivity, suggesting that the Porter's hypothesis is confirmed in China, but the increase in labor wages is not in tandem with productivity growth, resulting in reduced labor income share. Heterogeneity analysis shows that the impact of carbon trading policy on labor income share is mainly pronounced in larger firms, high technology firms and persistent incumbent firms. Collectively, these results are expected to accurately improve our understanding on the impact of low-carbon transformation of enterprises on income distribution and provide reference for the government to formulate industrial policies and distribution mechanisms under low-carbon economy. [ABSTRACT FROM AUTHOR]

The effectiveness of carbon price in emissions trading schemes (ETS) is an important issue in China in the context of its ambitious climate change goals. This paper adopts a staggered difference-in-differences model to estimate whether China's ETS reduced CO2 emissions while maintaining economic growth even under low carbon prices. The results indicate that despite the low carbon prices, the ETS effectively reduced CO2 emissions without undermining the economy. Specifically, an increase of $1 in the carbon price reduced CO2 emissions by 1.69% and increased the per capita GDP by $286. The carbon price primarily achieved emission reduction and promoted economic development through channels, such as technological innovation, foreign direct investment, energy mix, and industrial structure. Carbon leakage to neighboring regions was not evident. Heterogeneity analysis showed that the environmental effects of the carbon price were more pronounced in regions with higher levels of economic development and CO2 emissions. Conversely, the economic effects of the carbon price were more pronounced in regions with lower levels of economic development and CO2 emissions. The carbon price achieved significant economic effects in regions that solely adopted the free allocation mode of emission allowances, while regions that used a combination of free allocation and auctioning experienced substantial emission reduction effects. Despite low carbon prices, China's ETS effectively reduced CO2 emissions without compromising economic growth. This finding provides new empirical evidence for the effectiveness of carbon price as well as decision support for the future promotion of ETS. Technological innovation, FDI, energy mix, and industrial structure are crucial channels through which the carbon price achieves emission reduction and promotes economic development. The absence of carbon leakage to neighboring regions suggests that ETS is an internally effective mechanism for emission control. Heterogeneity analysis showed that regional characteristics and allowance allocation modes can influence the effectiveness of carbon price, thus emphasizing the importance of targeted policy design and appropriate allocation methods. [ABSTRACT FROM AUTHOR]

Under the overarching principle of sustainability, the reliance solely on expanding the landmass to meet the demand for high-quality economic growth is unsustainable. To address the need for harmonious ecological–economic development, this paper examines the influence of carbon emissions trading (CET) policies on the urban land green utilization efficiency (LGUE) from an environmental regulation perspective. Harnessing municipal panel data from 278 cities across China between 2011 and 2020, the study initially employs a super-efficient SBM model to estimate the urban LGUE. Further, a progressive difference-in-differences methodology is utilized to delve into CET's impact on the LGUE. The main results are as follows. (1) Through the visual analysis of the time–space evolution trend, the LGUE displays pronounced spatial agglomeration, with the LGUE values being higher in the central and western regions compared to the east, and in the south versus the north. Over time, it follows a "U-shaped" change pattern. (2) The CET policy exerts a statistically significant positive influence on the LGUE, although this effect is accompanied by a temporal lag. Following a number of approaches to validate the results, the impact remains significant. (3) Regarding the heterogenous effects, the CET policy appears to have a greater impact on resource-based cities and those in the eastern part of China relative to non-resource-based and central–western cities. This research offers empirical evidence and countermeasure recommendations for the further refinement of the CET policy to enhance the urban LGUE. [ABSTRACT FROM AUTHOR]

Life expectancy can reflect both health benefit and implementation cost of climate policy. Nevertheless, little research has quantified the relation between life expectancy and climate policy in literature. In this paper, we attempt to narrow the research gap by studying how life expectancy is related to the Chinese nationwide emission trading scheme (CNETS). To achieve this research target, a Computable General Equilibrium (CGE) model is employed to simulate the operation of the economic system and the policy shock from emission abatement. The CGE model results show that life expectancy is prolonged by GDP but shortened by emissions, and the GDP impact on life expectancy is larger than the emission impact. Climate policy has dual effects on life expectancy because it relieves both negative emission impacts and positive GDP impacts on lifespan; its net effect on life expectancy is positive. Life expectancy positively impacts GDP, and this impact is moderated by climate policy; specifically, climate policy reinforces the positive impact of life expectancy on GDP. Life expectancy minimally affects carbon emissions during climate policy implementation; in other words, it has minimal impacts on emission abatement. These findings imply that climate policy and life expectancy complement each other; the government could implement climate policy to increase lifespan or prolong life expectancy to facilitate policy implementation. [ABSTRACT FROM AUTHOR]

As a pivotal element in market mechanisms, carbon trading is increasingly recognized as crucial for achieving China's Carbon Peaking and Carbon Neutrality Goals. This study introduces a comprehensive dynamic model, integrating carbon trading, emissions, economic growth, and green technology innovation, to offer a holistic understanding of the interplay between these domains. Utilizing principles from nonlinear dynamics and chaos theory, the model is adept at simulating various scenarios and assessing the effectiveness of government policies in stabilizing these complex systems. In-depth analysis provided by this research sheds light on the nuanced impact of carbon trading policies on sustainable development. Key findings highlight (1) Carbon trading's essential role as a catalyst in propelling sustainable and high-quality growth. (2) A strong positive relationship is observed between the sophistication of the carbon trading mechanism and its effectiveness in stimulating green technology innovation and fostering high-quality green development. Notably, carbon trading's influence on green technology innovation markedly enhances the efficacy of carbon emission reduction strategies. (3) Government regulations are instrumental in augmenting carbon prices, thus incentivizing increased corporate participation in emission reduction and enhancing the overall impact of carbon emission reduction. Nevertheless, the study identifies a critical threshold in regulatory intensity, beyond which there is a risk of system destabilization ( a 3 ≥ 0.032 ). These findings underscore the imperative for developing an integrated national carbon emission trading market, prioritizing sustainable growth strategies and diligently pursuing China's environmental objectives. [ABSTRACT FROM AUTHOR]

Carbon emission reduction is an important means of achieving climate policy goals. However, the literature has neglected consideration of the carbon emission reduction mechanism from the perspective of technology risk spillovers in international trade. To explore this mechanism, this paper expands the classical linear model of foreign trade technology risk spillovers into a nonlinear spatial Durbin model. We construct a novel technology risk spillover index to forecast the magnitude of carbon emissions in agricultural trade across different regions. To validate our model, we consider the dual connotation of the spatial diffusion of disembodied technology communication (DTC) to map the relationships between different geographic and economic regions that are adjacent. The results suggest that disembodied technology risk spillover could promote carbon emission reductions. Specifically, technology risk spillovers from agricultural trade reduce agricultural carbon emissions by 0.79–1.16% in the local region. Disembodied technology risk spillovers also reduce agricultural carbon emissions by 2.85–11.57% in geographically adjacent regions and 4.9% in economically adjacent regions. Based on these conclusions, this paper proposes improving the closed and backward situation of rural areas in China's central and western regions, promoting the transition toward the high end of the global agricultural industry chain and developing productive agricultural services and the rural cultural tourism industry to expand rural employment channels and stabilize farmers' income. [ABSTRACT FROM AUTHOR]

Based on monthly economic data spanning from January 2015 to December 2022, we have established an analytical framework to examine the "Russia-Ukraine conflict—financial market pressure and energy market—China carbon emission trading prices." To achieve this objective, we developed indices for financial system pressure, the energy market, and investor sentiment, applying a mediation effects model to validate their transmission mechanisms. Subsequently, the TVP-SV-VAR model was employed to scrutinize the nonlinear impact of the Russia-Ukraine conflict on the valuation of China's carbon emission trading rights. This model integrates time-varying parameters (TVP) and stochastic volatility (SV), utilizing Markov Chain Monte Carlo (MCMC) technology for parameter estimation. Finally, various wavelet analysis techniques, including continuous wavelet transform, cross-wavelet transform, and wavelet coherence spectrum, were applied to decompose time series data into distinct time-frequency scales, facilitating an analysis of the lead-lag relationships within each time series. The research outcomes provide crucial insights for safeguarding the interests of trading organizations, refining the structure of the carbon market, and mitigating systemic risks on a global scale. [ABSTRACT FROM AUTHOR]

Coordinating policies is an essential guarantee for carbon emission reduction and sustainable development. Based on the theoretical framework of the policy paradigm, we quantitatively analyze 266 policy documents on promoting carbon emission trading and green financial policies from 2011 to 2022 using the content analysis research method. Based on the matching network of "policy objectives-policy tools," we analyze the synergistic characteristics of carbon emission trading policies and green financial policies in promoting carbon emission reduction targets and reveal the matching mode of "objectives-tools" of green financial policies by using social network analysis. It is found that, first, from the perspective of policy objectives, the main policy objectives of carbon emissions trading are to promote green innovation of enterprises, and the main policy objectives of green finance are to promote green development, which reflects the consistency and endogenous motivation of policy objectives. Secondly, command-control and market incentive policy tools are the main policy tools in the structure of policy tools. The proportion of public participation policy tools is small, and there is a structural asymmetry. Third, carbon emissions trading tools focus on supervision, adjustment, and platform construction. The green financial policy tools have the characteristics of guidance, public welfare, and externality. The two constitute a complementary, embedded, and integrated ' double synergy ' carbon emission reduction policy. Based on this, this paper puts forward some suggestions to promote policy coordination and provides a reference for China to achieve the dual carbon goal. [ABSTRACT FROM AUTHOR]

Evaluating the effects of China's carbon emission trading scheme (ETS) is crucial for the coordinated development of Chinese cities. Therefore, based on the panel data of 242 cities in China from 2008 to 2019, this paper uses the multi-period difference-in-difference (DID) model to comprehensively evaluate the impact of carbon market on the coordinated development of cities from the perspectives of carbon market policy and carbon market efficiency, and then analyzes the mechanism and heterogeneity of the effect of carbon market efficiency. The results show that both carbon market policy and carbon market efficiency can promote the coordinated development of cities. Science and education expenditure plays a significant intermediary role in the impact of carbon market efficiency on the coordinated development of cities. The heterogeneity test finds that the stricter the performance penalty system, the higher the level of urban coordinated development, and the stronger the effect of carbon market efficiency. The findings of this paper provide policy recommendations for further improving the construction of China's pilot and national ETS and enhancing the coordinated development of Chinese cities. [ABSTRACT FROM AUTHOR]

The carbon emission trading markets represent an emerging domain within China. The primary objective of this study is to explore whether carbon price volatility influences stock market volatility among companies subject to these emission trading regulations. Employing daily returns data from 293 publicly traded companies regulated by these emission trading markets, this study encompasses the national carbon market and eight pilot regional carbon markets spanning from August 2013 to October 2023. The results demonstrate that volatility in regional carbon prices positively impacts the stock volatility of companies in the corresponding emission trading region, indicating a volatility spillover effect. Moreover, this spillover effect is more pronounced in sectors marked by lesser carbon intensity than those with greater carbon intensity. The volatility transmission is more pronounced in coastal areas than in inland regions. However, no notable distinctions in volatility transmission are discerned between the periods before and throughout the COVID-19 pandemic. Vector autoregression analyses substantiate that lagged carbon price fluctuations possess limited predictive capacity for contemporaneous equity market volatility and vice versa. The robustness of these outcomes is fortified by applying the E-GARCH model, which accounts for the volatility clustering phenomenon. As the first investigation into the volatility spillover effect between China's emission trading market and corresponding stock markets, this study offers valuable insights into the investment strategies of retail investors, the formulation of carbon regulations by policymakers, and the carbon emission strategies of corporate managers. [ABSTRACT FROM AUTHOR]

In Sharm El Sheikh, Egypt, representatives from 198 countries convened for the 27th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP27) held between November 6 and 20, 2022. A consensus emerged regarding the imperative of embracing a "bottom-up" approach to tackling climate change. The phased introduction of dual-stage measures within the low-carbon city pilot policy in China affords a reputable natural experiment and establishes a treatment cohort for gauging carbon emissions within these zones. Empirical estimation of the abatement impact of China's low-carbon city pilot policy on carbon emissions is undertaken herein, leveraging a comprehensive dataset composed of information on carbon dioxide emissions and economic indicators spanning the years 2000–2017. Key findings are: (1) The low-carbon city pilot policy effectively reduces carbon emissions by 0.2808 Mt and decreases emission intensity by 11.59%. (2) China can achieve 40.28% of its emissions reduction target outlined in the 14th Five-Year Plan due to the efficacy of low-carbon cities. (3) The emissions reduction effect of the policy significantly increases with the implementation of Emissions Trading Scheme pilots. 4) The primary-stage initiatives of the low-carbon city pilot policy drive its emissions reduction effect, while the secondary-stage policy has limited impact due to rational public expectations. This research presents a model for low-carbon city development, proposing strategies that align with a "bottom-up" approach to tackle climate change. These insights may encourage member parties to strengthen commitments and adopt net-zero goals at COP meetings. [ABSTRACT FROM AUTHOR]

Many countries have launched the carbon emission trading scheme (ETS), attempting to limit carbon emissions through total amount control, and thus accelerating the improvement of emission reduction technology. However, the role of the ETS in emission reduction technical change (ERTC) is still controversial. To clarify the role of the ETS in ERTC, this paper firstly proposes an endogenous growth equilibrium model to theoretically analyze how the ETS induces ERTC, and extracts the corresponding influencing factors. Then, the emission reduction technology is further decomposed into the source, process and end-of-pipe emission reduction technologies by the whole process decomposition method. Last, taking China's carbon pilot market as a sample, we use the time-varying difference-in-difference method to empirically estimate the impacts of the ETS on ERTC. Results show that: (1) the ETS is conducive to ERTC, but whether the effect is significant is depends on the technology accumulation in the early stage, research efforts, success probability of technology research, and carbon trading effect; (2) China's ETS significantly improved the process emission reduction technology, but has no obvious effects on the source and end-of-pipe emission reduction technology. (3) China's ETS has heterogeneous impacts on technical change concerning different regions. Accordingly, three suggestions are provided, including laying out new technologies for energy conservation and emission reduction, expanding the industry coverage of the ETS, and correcting the distortion of carbon trading price. [ABSTRACT FROM AUTHOR]

To accelerate achieving carbon neutrality, the promotion of low-carbon development in the manufacturing industry has been facilitated by the government's implementation of policies such as carbon taxation and carbon emissions trading. These measures have been put in place to reduce carbon emissions and enhance sustainability within the manufacturing sector. Remanufacturing is an important direction for the low-carbon transformation of enterprises, and improving remanufactured product quality is crucial to the sustainability of remanufacturing enterprises. To elucidate the influence of policies aimed at reducing carbon emissions on the quality of remanufactured products, we developed a game model involving three key players: the original equipment manufacturer (OEM), the remanufacturer (IR), and retailers. This model was constructed based on the heterogeneous consumer demand for both new and remanufactured products. The study delved into the effects of various governmental policies aimed at reducing carbon emissions on the quality-related decisions made by remanufacturing enterprises. Our primary focus was on the implementation of two specific policies: a high-level carbon taxation policy and a carbon trading policy characterized by elevated carbon pricing. These policies create a favorable environment for remanufacturers (IR) to enhance the quality of their products. The sales of remanufactured products are influenced by the purchasing preferences of consumers, and carbon reduction policies can be effective in reducing the total environmental impact of manufacturing. Carbon trading policy is most conducive to environmental protection and achieves a win–win situation for economic and environmental benefits for OEMs and IRs when the carbon tax per unit is compared with the carbon trading price. Hence, this situation is favorable for the sustainable growth of existing remanufacturing businesses. Consequently, the government's requirement for subsidies to enhance the quality of remanufactured products and boost the competitiveness of IRs in the market becomes less pronounced. [ABSTRACT FROM AUTHOR]

Environmental rights trading (ERT) is considered one of the crucial instruments for environmental governance in China, accelerating urban low-carbon sustainable development. This study utilized the Chinese Emissions Trading System (ETS), which has been implemented most widely, longest, and most typical, to represent ERT and examine its contribution to urban carbon emission reduction. Through a quasi-natural experiment perspective, urban panel data were collected from 2003 to 2019, and a time-varying difference-in-differences model and moderating models were developed. The study indicates that ERT can significantly reduce carbon emissions in cities, with robust results. In addition, the carbon reduction effect of ERT varies by city region, type, and size. This phenomenon is more obvious in central and western cities and resource-based cities. Finally, a framework to strengthen the carbon reduction effect of ERT was creatively constructed. The strengthening effects of green innovation, industrial structure, and clean energy are evident. This helps provide evidence for ERT layout and extension, especially in countries with high carbon reduction needs such as China. ERT affects not only policymakers but also a greener future for every organization and individual in the city. [ABSTRACT FROM AUTHOR]

China has the world's largest carbon market in terms of greenhouse gas emissions, but its system needs to be improved and enhanced. In comparison, the European carbon market stands as the most mature and well-developed carbon market globally. Carbon trading prices, serving as a barometer for the carbon market, are significantly influenced by investor behavior. Therefore, it is necessary to analyze the characteristics of carbon trading prices in both China and Europe, considering the impact of investor trading intervals and psychological expected returns. This study utilizes the Zipf method to characterize the dynamic behavior of carbon trading prices between China and Europe, conducting a comparative analysis. The results show distinctive asymmetry in the behavior of carbon trading prices in both markets. In the Chinese market, when τ < 277, the absolute deviation da(τ, ε) value gradually changes but consistently indicates a bullish trend. However, when τ ≥ 277, the da(τ, ε) value surges rapidly, reflecting a pronounced bullish sentiment among investors toward carbon trading prices in China. In the European market, within the sample period, regardless of variations in τ and ε, the da(τ, ε) value shows a linear upward trend, indicating a significant overall bullishness in prices. This suggests a higher probability of long-term bullishness in carbon trading prices. Investors' investment time scale (τ) and expected returns (ε) both influence the behavior of carbon trading prices in both China and Europe. Generally, a longer τ implies a higher probability of bullishness. As for ε, higher values lead to more extreme judgments on price movements, resulting in greater distortion in carbon trading prices. Short-term investors (τ<1 month) anticipate extreme fluctuations, exhibiting random behavior when ε < 0.15 and converging rapidly to extreme values of 1 or 0 when ε ≥ 0.15. Long-term investors (τ>quarter) are less biased, expressing a bullish outlook on both Chinese and European carbon prices. With increasing ε, the probability of bullishness either increases or decreases rapidly until reaching the saturation point. Once saturated, there is no further distortion in carbon price behavior. Furthermore, the Chinese carbon market displays a positive trend in carbon trading prices and a higher probability of long-term bullishness. For the European market, lower expected returns contribute to considerable carbon trading price fluctuations, exacerbating risk and uncertainty. The results of this study contribute to understanding the diverse trading behaviors in Chinese and European carbon markets and provide guidance for avoiding extreme volatility in carbon trading prices. [ABSTRACT FROM AUTHOR]

China enacted and implemented a carbon emissions trading pilot policy in 2011, and whether this carbon emissions trading scheme (ETS) can promote the development of green finance is crucial to realizing a win–win situation for both environmental and economic performance. Based on the panel data of 30 provinces in China from 2007 to 2019, this study constructs a multi-period double-difference model (DID) to explore the impact of carbon ETS on the development of green finance and uses the spatial Durbin model (SDM) to test whether there is a spatial spillover effect of the carbon ETS on the development of green finance. The results show that (a) the implementation of carbon ETS significantly promotes the development of green finance, and this conclusion still holds through a series of robustness tests; (b) the promotion effect of the carbon ETS on the development of green finance is more significant in eastern and western provinces, non-resource–based provinces, and provinces with a high level of openness to the outside world; (c) industrial structural upgrading and green innovation play pivotal roles in achieving the desired outcomes of carbon ETS; (d) carbon ETS have spatial spillover effects on the development of green finance, with the indirect effects being more significant than the direct effects. The findings of this study can serve as a valuable reference for expediting the establishment of a unified national carbon market and the development of a robust green financial system. This holds immense significance in effectively implementing the "dual-carbon" strategy. [ABSTRACT FROM AUTHOR]

Deepening the carbon market allocation reform is a strong support for carbon peaking and carbon neutrality. China has been piloting carbon trading in batches since 2013. However, there is little literature on whether and how carbon emission trading (CET) improves total factor carbon emission efficiency (TFCEE). To fill this gap, this study first calculates urban TFCEE using an extended Epsilon-based model and then designs a quasi-natural experiment based on causal inference. The staggered DID model is adopted to investigate the impact of CET pilot policies on urban TFCEE and its impact mechanism. Our results show that (1) the CET policy has a significant promoting effect on TFCEE in pilot cities, and this conclusion is reconfirmed by adopting robustness tests. (2) The mediating effect models are employed to confirm the mediating role of green technology innovation, industrial structure upgrading, and resource allocation efficiency in CET policy promoting regional TFCEE. (3) The heterogeneity test of CET policy depicts a considerable positive impact on TFCEE in cities with abundant resources. Eastern and developed cities are more likely to experience better carbon efficiency promotion through this policy than other cities. This study provides evidence for the important role of CET in promoting the development of a low-carbon economy and carbon neutrality. [ABSTRACT FROM AUTHOR]

The low-carbon transition is a systemic economic and social change that will inevitably have an impact on many areas of the urban system. Has China's ongoing low-carbon transition impacted urban resilience (UR) systems while achieving urban energy saving and carbon emission reduction goals? This paper uses the implementation of the carbon emissions trading pilot policy (CETPP) as a "quasi-natural experiment." It evaluates the impact of the policy on UR using a difference-in-differences model based on the data of prefecture-level cities from 2008 to 2020. The study shows that pilot carbon trading policies favor UR, and the market mechanism of carbon emissions has a heterogeneous cause influence on UR. The impact of pilot carbon trading policies on UR varies according to the respective moderating effects of institutional factors, green technology innovation, industrial structure rationalization, and output effects. [ABSTRACT FROM AUTHOR]

The carbon emission trading pilot policy is an important initiative to achieve synergistic economic-environmental development. Based on the data of 268 cities in China from 2006 to 2020, this paper analyzes the impact of carbon emission trading pilot policy on urban innovation capacity by using a time-varying difference-in-difference model. The study shows that, first, the implementation of the CETP improves the innovation capacity of cities, and the robustness test confirms the above findings. Second, the effect of the policy on enhancing urban innovation capacity is heterogeneous between the type of innovation and city type: the promotion of innovation capacity is stronger for utility model patents and non-capital cities. Third, there is a positive spillover effect of the implementation of the CETP on the promotion effect of the urban innovation capacity, which can lead to the improvement of the innovation capacity of neighboring cities. This paper has some reference value for building a unified carbon emission trading market and promoting low-carbon economic development within China. [ABSTRACT FROM AUTHOR]

Collaborative reduction of carbon and air pollutants can more efficiently achieve green technological change, industrial low-carbon transition, and high-quality economic and social development. As a typical environmental policy in China, the pilot carbon Emission Trading Scheme (ETS) has obvious advantages in achieving the collaborative reduction of carbon and air pollutants. Therefore, an evaluation of China's pilot carbon ETS from the perspective of collaborative reduction of carbon and air pollutants is performed in this paper. Compared with previous studies, first, this study innovatively uses the coupled coordination degree (CCD) model to measure the collaborative reduction level of carbon and air pollutants under different scenarios based on the panel data of China's 30 provincial-level regions during 2004–2018. Second, this study uses the DID method to evaluate the impact of China's pilot carbon ETS on the collaborative reduction of carbon and air pollutants and conducts some robustness checks and regional heterogeneity regressions. Third, this study uses the synthetic control method (SCM) further to examine the policy outcomes of the pilot carbon ETS. Scenario analysis shows that attaching importance to reducing air pollution will improve the collaborative reduction effect of carbon and air pollutants. Furthermore, the implementation of China's pilot carbon ETS exerts an effect of roughly 24.7% on reducing carbon, roughly 10.1% on reducing air pollutants, and roughly 22.0% on the collaborative reduction of carbon and air pollutants, ceteris paribus. Regional heterogeneity analysis shows that the impacts of the pilot carbon ETS are significant in all regions, except that the impact on reducing air pollutants in the central region is not significant. In addition, results from SCM indicate that the impacts of the pilot carbon ETS on the collaborative reduction of carbon and air pollutants are significantly efficient in Beijing, Tianjin, Shanghai, Hubei, and Chongqing, while not much efficient in Guangdong and Fujian. The main policy implications include strengthening the top-level design of the ETS in the collaborative reduction of carbon and air pollutants, attaching importance to the governance of air pollution, making the regional governance more targeted, and improving energy efficiency. [ABSTRACT FROM AUTHOR]

The number of cars is increasing every year and the environmental aspects of transport are becoming a hot topic. The spatial and temporal patterns of motor vehicle carbon monoxide (CO) emissions are still unclear due to the unbalanced economic development and heterogeneous geographic conditions of China. With the objective of realizing a reduction in motor vehicle CO emissions, his study explores the transport carbon emission reduction pathways of China from motor vehicle CO emission. Firstly, the entropy method is adopted to comprehensively evaluate the CO emissions from motor vehicles in each province; secondly, the development of a Geographically and Temporally Weighted Regression (GTWR) model facilitates the examination of the spatiotemporal dynamics pertaining to the influencing factors of motor vehicle CO emissions within each province.; finally, the characteristics of motor vehicle CO emissions in ETS pilot areas and non-ETS pilot areas are compared. The results show that: (1) After the completion of the six ETS pilot areas in 2011, the CO emission from motor vehicles is reduced by 18% compared with 2010.(2)The entropy method shows that the largest CO emissions from motor vehicles are from Beijing, Shanghai, Guangdong and other provinces with high economic levels.(3) The results of the GTWR model show that the positive effects of economic level, population size, road mileage intensity and motor vehicle intensity on motor vehicle CO emissions are decreasing year by year. The negative effect of metro line intensity on CO emission decreases year by year. This study can help decision makers to identify the high emission areas, understand the influencing factors, and formulate emission reduction measures to achieve the purpose of carbon emission reduction in transport. [ABSTRACT FROM AUTHOR]

The analysis of energy use not only sheds light on lightening the increasing pressures from energy systems but also improves the flexibility and reliability of power systems. As the highest carbon emission country in the world, detailed evaluation of China's carbon emission trading scheme (ETS) on the energy use is sensitive to energy sectors and highlights the importance of energy utilization in current society. Yet, because of the presence of a possible discontinuity caused by policy implementation, this study uses synthetic control method (SCM) to confirm whether there is a cutoff for energy use after the ETS implementation. Furthermore, threshold regression model is integrated to estimate the causal relationship when there is a discontinuity. SCM is used to verify which has caused the discontinuity for threshold regression model, and threshold regression model is used to quantify and estimate the causal relationship which SCM cannot evaluate. Through the data analysis, it is found that ETS makes effect on energy use deduction in most of pilot ETS regions while the effect is affected by economic development, population, industry, and research. Some suggestions on how to reduce energy use conclude this paper. [ABSTRACT FROM AUTHOR]

Green and low carbon transition is a broad and profound economic and social systematic change. Green innovation is a critical way to promote energy saving and emission reduction. Has China continuously promoted a carbon emission trading policy to significantly promote green innovation cooperation? Taking the implementation of the carbon emission trading pilot policy as a "quasi-natural experiment," this study answers this question by exploring the impact of the policy on green innovation cooperation. Based on data on 274 cities from 2008 to 2020, the multi-time difference-in-differences model is used to evaluate the impact of the policy on green innovation cooperation. The results reveal that the carbon emission trading pilot policy significantly improved inter- and intra-city green innovation cooperation through the upgrading effect of industrial structure and the coverage effect of digital finance compared with the non-pilot cities at the city level. In addition, there are significant differences in the policy effects among cities with different degrees of openness to the outside world and command-and-control environmental regulation. [ABSTRACT FROM AUTHOR]

The carbon emissions trading system (CETS) is a helpful policy instrument for separating carbon emissions from economic expansion, and it significantly impacts energy efficiency (EE). This study uses 30 Chinese provinces from 2007 to 2020 as its research samples, and classifies energy efficiency into single-factor energy efficiency (SFE) and total-factor energy efficiency (TFE), using the difference-in-differences model to examine the effect and mechanism of the CETS on EE. As an additional tool to assess the efficacy of the CETS, the corresponding evolution of the rebound effect of energy-related carbon emissions (RECE) is also calculated. This study shows that the CETS can significantly improve EE in China's pilot provinces. The influence mechanism indicates that the effect of the CETS on EE is influenced by the level of government governance, green innovation, and industrial structure optimization. Further study finds that after the CETS was carried out, the RECE in pilot provinces was higher than that in non-pilot provinces, and 31.4% of carbon emissions reduced by EE improvement rebounded. Therefore, the CETS has yet to realize its full carbon reduction potential. The study offers specific policy proposals for the enhancement of China's CETS in light of the aforementioned findings. [ABSTRACT FROM AUTHOR]

This paper estimates the influences of different industries on the carbon prices and selects the industries with high market power in the carbon market. To realize price discovery in the carbon market and improve the market efficiency, we suggest that industries with higher market power should be included in the market prior to other industries. Using the LASSO regression to analyze the data from the pilot markets of China's ETS and related industrial product outputs, we find that among all related industries, the petrochemical and chemical industries affect the carbon price the most and hence should be included in China's ETS with priority. The power generation industry, though regarded as the major entity of emission control, imposes weaker influences on the carbon price. Industries that may be incorporated in China's ETS later include the transportation equipment manufacturing and the mining and metal industries. [ABSTRACT FROM AUTHOR]

This study examines whether and how carbon trading policy impacts the financialization of non-financial firms, using China emission trading scheme as a quasi-natural experiment. We find that the carbon trading policy exerts a substantial and enduring inhibitory effect on corporate financialization. Our findings are robust to possible result bias and more precise control group. Additionally, we explore potential channels through which carbon trading policy can affect financialization, and find that it curbs financialization by reducing financing constraints. Finally, we demonstrate that the relationship between carbon trading policy and financialization of non-financial companies is moderated by company's ownership, region, and industry competition. [ABSTRACT FROM AUTHOR]

Carbon emission trading policies play a key role in reducing carbon emissions through market-based mechanisms. In the context of China's carbon neutrality goals and carbon peaking targets, it is important to predict and evaluate the effectiveness of such policies. The combined impact of carbon trading policies on carbon emission reduction and economic output has not been well investigated in previous studies. In this study, the impact of carbon emission trading policies on regional carbon emission performance was assessed through mechanism analysis and empirical tests. The mechanism analysis showed that carbon emission intensity reduction relied on three mediating effects: technological innovation incentives, industrial structure optimization, and energy substitution. For the empirical test, the multi-time difference-in-differences (DID) method was adopted to study the impact using panel data from 30 provinces in China between 2005 and 2019. Moreover, the specific impact mechanism was further tested using mediating effects. The results showed that China's carbon trading policy has significantly affected the carbon emission performance of the pilot regions, and factors such as GDP per capita, urbanization level, and capital-labor ratio have notably contributed to the reduction of carbon emission intensity. The proportions of the three mediating effects in the total effect were estimated to be 60.98%, 23.17%, and 10.14%, respectively. This study provides an empirical approach to the study of the impact of carbon trading policy on carbon emission reduction and economic output and can serve as a reference for addressing climate change and alleviating conflicts between the environment and economic growth in similar regions. [ABSTRACT FROM AUTHOR]

Establishing an efficient carbon emissions trading market is a priority to achieve the goal of carbon peaking and carbon neutrality. In the context of income inequality and emissions inequality, this study examined the efficiency of carbon trading in China from the perspective of resident income. First, this paper used the Cobb–Douglas (C-D) production function to incorporate carbon intensity into the production network model and obtained the expression of household income by solving the Walras equilibrium. Secondly, this study put forward a theory that Carbon trading affects the income level of individuals. Finally, in order to test the theory, the study used the differences-in-differences (DID) method, provincial panel data from 2005 to 2019, and the quasi-natural experiment of China's carbon emissions trading pilot. The results indicated that this policy could reduce the per capita disposable income level. Further heterogeneity research showed that although the emission reduction effect was significant, the pilot policy failed to save emission reduction costs and improve residents' welfare. The low efficiency of the carbon market was mainly attributed to the insufficient liquidity of the pilot carbon market. Therefore, it not only failed to achieve efficiency but also increased unnecessary costs, which had a negative impact on income. In addition, the consumption patterns of residents and the industrial-oriented economic structure exacerbated the decline in income. [ABSTRACT FROM AUTHOR]

Based on the data of listed companies in China's iron and steel industry from 2007 to 2020, the article investigates the impact mechanism and the path of action of China's carbon emissions trading pilot on the green total factor productivity of iron and steel enterprises by constructing a multi-period difference-in-difference model difference-in-differences. The study finds that: 1) China's iron and steel enterprises significantly improve their green total factor productivity driven by the carbon trading pilot, and the findings pass the corresponding robustness tests. 2) the mechanism analysis indicates that the carbon trading pilot promotes the green total factor productivity of iron and steel enterprises by forcing the technological progress of enterprises. 3) The heterogeneity analysis shows that the positive effect is more significant for large iron and steel enterprises with high social responsibility rating and high local government competition intensity, but not for small enterprises with low social responsibility rating and low local government competition intensity. 4) the dynamic effect shows that there is a certain lag in the promotion effect of the carbon emission trading pilot on the green total factor productivity of iron and steel enterprises, but its long-term effect is more obvious. This paper puts forward corresponding suggestions for accelerating the construction of a national unified green and low-carbon market system and actively promoting the deepening of the "dual-carbon" goal. [ABSTRACT FROM AUTHOR]

Maximizing socioeconomic and environmental benefits with minimal investment in urban land resources is a key concern for sustainable urban development. The emission trading system is an important strategy of the Chinese government to control environmental pollution and promote green development, but whether it improves urban land green use efficiency is still unclear. Combining the concept of green development with urban land use efficiency, this paper uses the super-efficiency slack-based measure (SBM) model with undesirable outputs to measure the land green use efficiency of 261 prefecture-level cities in China from 2003 to 2017. In addition, the propensity score matching difference-in-differences (PSM-DID) method and the mediating effect model were used to test the impact of the China's emission trading system on urban land green use efficiency and behind the mechanism. According to the findings, China's emission trading system has significantly improved urban land green use efficiency, compared with that in nonpilot cities, urban land green use efficiency in pilot cities has increased by 10.40%. Moreover, the policy effect of the emission trading system is more significant in resource-based cities and cities with a high intensity of environmental regulations. Further mechanism analysis reveals that green technology innovation and industrial structure upgrading are effective transmission mechanisms for China's emissions trading policy to improve urban land green use efficiency. The findings provide policy implications for promoting the sustainable use of urban land resources and advancing the coordinated development of urban socioeconomic and ecological environments. [ABSTRACT FROM AUTHOR]

To achieve the goal of carbon reduction, China has been piloting the Carbon Emission Trading System (CETS) since 2013. As the economy faces a downward trend, it is significant to explore the impact of CETS on business development. There is still debate in academia about whether this policy can boost the level of business development. This paper, based on all A-share data of listed companies in China from 2009 to 2018, uses the Difference in Differences (DID) model to verify the impact of CETS on the input of capital and labor factors and the level of technology in enterprises and discusses the industry heterogeneity of this impact in detail. Placebo tests, propensity score matching, and triple differences ensure the robustness of the conclusions. In further research, this paper decomposes the policy effect of CETS. It regresses the impact of carbon quota prices and carbon market trading scale on business development. The final conclusion is that CETS has a positive impact on the input of capital and labor in enterprises and a negative impact on the level of technology. After distinguishing industries, this conclusion shows differences according to different characteristics of high emissions and low emissions. In addition, the increase in carbon quota prices hinders business development, while the scale of carbon market trading shows an inverted "U" relationship with business development. The article provides meaningful policy references for China and countries in the early stages of CETS construction. [ABSTRACT FROM AUTHOR]