Beggar-thy-neighbor: Carbon leakage within China's pilot emissions trading schemes

Zhao, Zhiqi; Li, Yunyan; Su, Xianhong

doi:10.1016/j.spc.2024.04.004

Sustainable Production and Consumption

2024

DOI: 10.1016/j.spc.2024.04.004

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Beggar-thy-neighbor: Carbon leakage within China's pilot emissions trading schemes

Zhiqi Zhao,

Yunyan Li,

Xianhong Su

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2024

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Cited by 3 publications

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The impact of carbon leakage from energy-saving targets: A moderating effect based on new-energy model cities

Yu,

Wang,

et al. 2024

Applied Energy

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The impact of carbon leakage from energy-saving targets: A moderating effect based on new-energy model cities

Yu,

Wang,

et al. 2024

Applied Energy

View full text Add to dashboard Cite

Mountains block and seas move: The impact of geographical environment on the China's Carbon Emissions Trading Scheme in reducing urban PM2.5 concentrations

Zhao,

Li,

2024

Sustainable Cities and Society

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Carbon Abatement and Leakage in China’s Regional Carbon Emission Trading

Jiang,

Ye,

Zeng

et al. 2024

Environ. Sci. Technol.

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Emission trading schemes (ETS) are increasingly becoming a popular policy instrument to balance carbon abatement and economic growth. As a globally unified carbon pricing system has not yet been established, whether regionally operated ETSs cause carbon leakage remains a major concern. Taking China's regional pilot ETSs as a quasi-natural experiment, the study uses the spatial difference-in-differences method to examine how regional ETSs affect carbon emissions in and outside cities of policy implementation. Our analysis finds that China's regional ETS policy contributes to a 6.1% reduction in urban CO 2 emissions and a 6.6% decline in emissions intensity in regulated cities, causing carbon leakages that increase CO 2 emissions in neighboring cities by 1.7% on average. Our finding further suggests that regional ETSs mitigate local CO 2 emissions through outsourcing production, improving energy efficiency and decarbonizing energy structure, whereas the outsourcing of industrial production drives up CO 2 emissions in adjacent cities. Moreover, the performances of regional ETSs vary largely by socioeconomic context and mechanism design. China's regional ETSs reduce CO 2 emissions more effectively in central and industrial cities but with more severe carbon leakage, while rigorous compliance mechanisms and active market trading help deepen carbon abatement and alleviate carbon leakage.

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Beggar-thy-neighbor: Carbon leakage within China's pilot emissions trading schemes

Cited by 3 publications

References 52 publications

The impact of carbon leakage from energy-saving targets: A moderating effect based on new-energy model cities

The impact of carbon leakage from energy-saving targets: A moderating effect based on new-energy model cities

Mountains block and seas move: The impact of geographical environment on the China's Carbon Emissions Trading Scheme in reducing urban PM2.5 concentrations

Carbon Abatement and Leakage in China’s Regional Carbon Emission Trading

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