Clean energy, financial development, and economic growth: Evidence from spatial spillover effects and quasi-natural experiments

Tan

et al. 2023

IJERPH

Does clean energy development (CED) have a spatial spillover effect on economic growth (EG)? Using the panel data of 30 provincial administrative units from 2000 to 2019 in China, this study empirically investigates the spatial spillover effect of CED on EG. From the perspective of the supply side rather than the consumption side, using the spatial Durbin model (SDM), the study finds that CED does not have a significant impact on EG, while there is an apparent positive spillover effect of CED on EG in China, meaning that CED in one province can boost EG in the surrounding provinces. Theoretically, this paper provides a new perspective for studying the relationship between CED and EG. In practice, it provides a reference for further improving the government’s future energy policy.

Section: Literature Review and Theoretical Analysismentioning

confidence: 99%

“…Many scholars’ studies mainly focus on the causal relationship between CED and EG. As regards the causal relationship between CED and EG, there is still no consensus in the academic community [ 8 , 9 , 10 , 11 , 12 , 13 , 14 , 15 ].…”

Section: Literature Review and Theoretical Analysismentioning

confidence: 99%

The Spatial Spillover Effect of Clean Energy Development on Economic Development: A Case of Theoretical and Empirical Analyses from China

Tan

et al. 2023

IJERPH

Mitig Adapt Strateg Glob Change

“…DID proposed by Ashenfelter (1978) was used to capture the net effect of policy implementation by comparing the coefficient changes between the treatment and control groups before and after the policy implementation. Thus, it has been widely used to estimate the causal effects of specific policies (See Gu et al 2021;Yang & Wang 2021;Chen et al 2021a, b, c). The model used to verify the average treatment effect of ETS on LEE is specified as follows:…”

Section: Benchmark Regressionmentioning

confidence: 99%

Quantify the Effect of China’s Emission Trading Scheme on Low-carbon Eco-efficiency: Evidence from China’s 283 Cities

Tao

Failler

Goh

et al. 2022

The establishment of a carbon trading market is crucial for China to fulfil its carbon emission commitments through a market mechanism. As a market-based environmental regulation instrument, Emission Trading Scheme (ETS) has been attracted increasing attention worldwide, while the effect of ETS on low-carbon economy efficiency (LEE) has not been fully investigated, thus inspiring us to fulfil this research gap. Using the panel data of China’s 283 selected prefecture-level cities during 2006–2017, we adopted the difference-in-differences (DID) model, propensity-score-matched DID (PSM-DID) model, and the spatial DID model to model the direct and indirect effects of China’s ETS on LEE at national, regional, and local (resource-based cities with different development stages) levels. The robust results yield that ETS directly and significantly improved China’s LEE at the national level. Still, the LEE in ETS pilot region will increase by approximately 4.3% compared with untreated cities, while the spatial heterogeneity of this effect is captured at regional and local levels, which emphasises the necessity of a completed market construction and classified supervision. The results of this paper provide important insights for strengthening the policy design of a nationwide carbon market, and a reference point for other regions and countries, especially developing countries, in refining a carbon trading market.

“…It includes nuclear energy and renewable energy. 3 In addition, the definition of clean energy has three aspects: one, clean energy describes the technical system of energy utilization, which is not a simple classification of energy; two, clean energy values cleanliness and economy; and three, clean energy complies with certain emission standards. 4 According to the China Energy Administration, clean energy consumption in China will account for 80% of the total energy consumption in the next five years.…”

Section: Introductionmentioning

confidence: 99%

“…5 After nearly ten years of piloting, on July 16, 2021, the emissions trading market was officially launched in China. 3 The emissions trading market allows firms with lower carbon emissions to trade on the premise that the total emissions specified by carbon emissions trading are not exceeded. A firm's right to emit a certain amount of carbon dioxide turns into a trading commodity.…”

Section: Introductionmentioning

confidence: 99%

Clean energy, emission trading policy, and CO₂ emissions: Evidence from China

Yang

2022

Energy & Environment

Self Cite

This paper constructs a unique dataset of clean energy and adopts static panel models and dynamic panel specifications to explore the correlation between clean energy and CO2 emissions. Furthermore, this paper employs the interaction term of pilot areas and pilot time as the proxy of emission trading policy to examine the effect of China’s emission trading pilot on clean energy. Then, this paper conducts quasi-natural experiments on CO2 emissions. Our findings show a negative correlation between CO2 emissions and clean energy. We also find that China’s emission trading pilot has a significant impact on promoting clean energy. In addition, empirical results affirm that emission trading market pilots can help decrease CO2 emissions. Finally, we put forwards relevant policy recommendations.