Carbon Emission Trading Scheme, Carbon Emissions Reduction and Spatial Spillover Effects: Quasi-Experimental Evidence From China

Yang, Zhaofu; Yuan, Yanbin; Zhang, Qingzhi

doi:10.3389/fenvs.2021.824298

Cited by 30 publications

(14 citation statements)

References 43 publications

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“…Since the national unified carbon emissions trading market was officially announced at the end of 2017, it is expected that the preparation of national carbon emission trading would not severely affect the untreated power plants during the research period. However, previous findings showed the exist spillover effects of ETS on improving the green total factor productivity and reducing carbon emission in non-pilot cities and provinces (Li et al, 2022;Yang et al, 2022;Zhu et al, 2022). Although there is no enough evidence indicating its influence on plant-level financial performance in non-pilot provinces, it is still possible that these factors could contaminate the donor pool and further lead to underestimation of the cost efficiency improvement for treated power plants.…”

Section: Figure 2: Treatment Effects Of Carbon Emission Trading Polic...mentioning

confidence: 97%

When and Under What Conditions Does an Emission Trading Scheme Become Cost Effective?

Zhang¹,

Zhang²,

Zhang³

2024

The Energy Journal

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This paper studies when and under what conditions the actions undertaken by the power plants involved in China's emission trading scheme (ETS) pilot became cost effective. Based on unique plant-level panel data and the difference-in-differences strategy, we identify that an insignificant initial reduction in cost efficiency occurred at the announcement stage for power plants in the pilot provinces; however, the cost efficiency of the pilot plants increased significantly following formal policy implementation. Additionally, the by-stage treatment effects differed across the pilot provinces due to localized market and non-market variations. Localized conditions of higher marketization, stricter policy enforcement, and lower carbon dependence enhanced this positive effect. The synthetic control results confirmed this variation in the policy effects. The carbon trading pilots resulted in improved efficiency in power plants in Shanghai, Guangdong, and Tianjin during the period 2013-2017, with an associated total cost saving of approximately 29.75 million RMB. To enhance the efficacy of the ETS policy, our findings suggest that the design of the policy should consider localized external factors.

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Section: Figure 2: Treatment Effects Of Carbon Emission Trading Polic...mentioning

confidence: 97%

When and Under What Conditions Does an Emission Trading Scheme Become Cost Effective?

Zhang¹,

Zhang²,

Zhang³

2024

The Energy Journal

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“…In addition, neighboring regions can provide a broad market for the output of local innovation factors and match technical talents. The resulting industrial upgrading will improve the overall carbon emission performance of the region (Yang and Liu, 2020;Kuang et al, 2022;Yang Z et al, 2022). Therefore, the second hypothesis is proposed in this paper.…”

Section: Research Hypothesismentioning

confidence: 97%

“…From the lo-cation of the pilot innovative cities, there are a certain number of pilots distributed in the east, middle and west of the country. The relatively economically developed coastal provinces in the east have more pilot innovative cities (Yang Z et al, 2022). In terms of the development of innovative cities, the goal of building innovative cities is gradually evolving from enhancing innovation to restructuring urban industries and building sustainable societies.…”

Section: Policy Background Of Innovative City Pilotsmentioning

confidence: 99%

Assessing the effectiveness of innovative city pilots in improving urban carbon emission performance: A spatial difference-in-difference approach

Long

Tan³

et al. 2022

Front. Environ. Sci.

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Existing studies have focused on the impact of innovation on carbon emission performance but ignore the importance of government support for innovation. To overcome this challenge, this paper adopts a spatial difference-in-difference (DID) model to assess the impact of government support for innovation on urban carbon emission performance based on a quasi-natural experiment of innovative city pilots (ICP) in China. Using the high-resolution carbon emission data of 1 km × 1 km for 238 cities from 2008 to 2019 in China, this paper employees an extended stochastic frontier analysis (SFA) model to measure urban carbon emission performance. Our findings indicate that ICP implementation leads to a 1.3% improvement in local carbon emission performance. Meanwhile, there is a significant spatial spillover effect of ICP implementation, with a 3.3% improvement in the carbon performance of the surrounding areas. The results of the mechanism analysis suggest that government innovation support affects carbon emission performance by promoting total factor productivity improvement, green innovation, and industrial upgrading. Further analysis shows that ICP has the strongest impact on carbon performance in the eastern region, and the impact is stronger for large cities and resource-dependent cities. Finally, the paper carries out a series of robustness tests to ensure the reliability of the analytical results, including parallel trend tests, placebo tests and re-estimation of different methods. Based on the findings, this paper proposes feasible policy recommendations in terms of continuous promotion of government innovation support, regional cooperation and differentiated innovation support formulation.

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“…The traditional difference-in-differences (DID) model is often used to assess the effect of policies (Yang et al, 2022). According to the fundamental principles of the DID model, a prerequisite for the validity of DID model parameter estimates is to satisfy the stable unit treatment value assumption (SUTVA) (Rubin, 1986;Rosenbaum, 2010).…”

Section: Spatial Econometric Modelmentioning

confidence: 99%

The Green and Low-Carbon Development Effect of Comprehensive Sports Events: A Quasi-Natural Experiment From China

Zhang

Wu²

2022

Front. Environ. Sci.

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Large-scale sports events can improve public environmental awareness, strengthen urban governance, and push green innovation. However, it may also increase the burden on infrastructure, cause energy consumption, and lead to some pollution. Using the panel data of 278 cities in China from 2006 to 2019, this study systematically discusses how comprehensive sports events affect the green and low-carbon development of Chinese cities. First, the green total factor productivity and carbon emission efficiency calculated by the SBM-DEA model are taken as proxy variables of green and low-carbon development. And then, the spatial difference-in-differences (SDID) model is used to undertake empirical analysis and further test the impact mechanism and heterogeneity. Four main results are derived from this study: 1) the hosting of comprehensive sports events can significantly enhance the green and low-carbon development of cities. This result is still valid after a whole string of robustness tests; 2) comprehensive sports events have a significant positive spatial spillover effect on the green and low-carbon development of adjacent cities; 3) the mechanism analysis shows that comprehensive sports events can encourage green development of cities through technological innovation, sports industry development, and foreign investment, but through foreign investment, sports events cannot significantly affect the green total factor productivity and carbon emission efficiency of host cities; and 4) heterogeneity exists between the city rank and the event level. The promotional effect of comprehensive sports events on cities’ green and low-carbon development is more significant in first-tier cities and for international events.

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Carbon Emission Trading Scheme, Carbon Emissions Reduction and Spatial Spillover Effects: Quasi-Experimental Evidence From China

Cited by 30 publications

References 43 publications

When and Under What Conditions Does an Emission Trading Scheme Become Cost Effective?

When and Under What Conditions Does an Emission Trading Scheme Become Cost Effective?

Assessing the effectiveness of innovative city pilots in improving urban carbon emission performance: A spatial difference-in-difference approach

The Green and Low-Carbon Development Effect of Comprehensive Sports Events: A Quasi-Natural Experiment From China

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