Can the SO₂ emission trading system promote urban emission reduction?

Abstract

Preliminary explorations have been conducted on the SO2 emission trading system (ETS) in China, but existing studies have paid little attention to the system's emission reduction effect and the effect mechanism. Based on panel data of Chinese cities, this paper empirically examines the influence and mechanism of the SO2 ETS on urban SO2 emission. In addition, considering the role of government in local environmental governance, this paper also examines synergies between government environmental regulations and the SO2 ETS. The SO2 ETS significantly suppresses urban SO2 emission, but under more extreme levels of urban SO2 pollution, this emission reduction effect gradually weakens until it is no longer significant. The implementation of more stringent environmental regulations by local governments strengthens the emission reduction effect. The analysis of intermediary effects shows that the SO2 ETS promotes the reduction of urban SO2 emission by stimulating green technological innovation, promoting industrial structure adjustment, and channeling investment towards green assets, with the latter intermediary effect being stronger than the former two. This paper affirms the important role of ETSs in the development of the green economy and provides an empirical basis for countries to introduce market mechanisms to solve environmental challenges and leverage the role of government environmental regulation.

Can international students help enhance China's urban innovation?

“…Equation mainly examines the effect of international students on urban innovation based on a two‐way fixed‐effect model. Considering the dynamic characteristics of the effect of international students on urban innovation at different levels, we follow Goff et al (2019) and Yang et al (2021) to use the quantile regression model to investigate the dynamic track of the impact of international students on urban innovation. In Equation , q is the quantile reflecting the marginal effect of international students on urban innovation.…”

Sulfur dioxide emissions curbing effects and influencing mechanisms of China’s emission trading system

“…Zhang Shengling et al (2021) showed that ETS achieves environmental optimization by increasing green total factor productivity (GTFP) and reducing investment in pollution-intensive industries in pilot provinces, confirming the existence of Porter's hypothesis and the investment transfer transmission path [45]. Yang S. et al (2021) showed that ETS promotes urban SO 2 reduction by stimulating green technology innovation, promoting industrial restructuring, and directing investment toward green assets. Among them, the mediating effect of directing investment toward green assets is the strongest [46].…”

“…Yang S. et al (2021) showed that ETS promotes urban SO 2 reduction by stimulating green technology innovation, promoting industrial restructuring, and directing investment toward green assets. Among them, the mediating effect of directing investment toward green assets is the strongest [ 46 ]. Because of the spatial spillover effect of the harm caused by the accelerated SO 2 emissions [ 47 ], Du Gang et al (2021) showed that ETS significantly stimulated green utility innovation in and around the pilot areas and that there was a masking effect of government intervention in the process [ 48 ].…”

Can an increase in the minimum wage standard force enterprises to innovate? Evidence from China

“…For example, for innovation input, commonly used measurement indicators include R&D investments and personnel (Brown et al, 2009;Yang, Wang, et al, 2022). In terms of innovation output, a commonly used indicator is the number of patents owned by the enterprise (Hall & Harhoff, 2012;Yang et al, 2021). Patent output is the final embodiment of the various innovation factors used as inputs (Shahzad et al, 2021;Su & Liu, 2021;Yang, Ma, & Lu, 2022).…”