Effects of Carbon Trading Pilot on Carbon Emission Reduction: Evidence from China’s 283 Prefecture-Level Cities

Tao, Miaomiao; Goh, Lim Thye

doi:10.1080/10971475.2022.2058181

Cited by 9 publications

(4 citation statements)

References 71 publications

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“… Notes: It is also noteworthy to mention that the “anticipation effect” (the estimated coefficient of the policy dummy variable pre_-1 was statistically significant in Fig 3) in this paper was also identified, which was consistent with [ 88 ]. In other words, firms may vigorously formulate strategic plans to respond to policy shock in advance.…”

Section: Resultssupporting

confidence: 89%

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The policy effect of green finance reform and innovations: Empirical evidence at the firm level

Dong

Tao

2022

PLoS ONE

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The Chinese central government established eight pilot zones in five provinces for green finance reform and innovations (GFRI) in 2017. The pilot zones promote green finance development and explore the propagable and reproducible experiences regarding mechanisms and institutions. Adopting a sample of China’s listed companies from 2012 to 2021, this paper constructed a quasi-natural experiment and investigated the GFRI policy’s effect on firms’ total factor productivity (TFP) using the difference-in-differences (DID) method to verify the implementation effect of the GFRI policy. Furthermore, heterogeneity analysis and mechanism analysis were conducted to identify the guidance effect and deep mechanisms of the GFRI policy. The empirical results demonstrated that firms’ TFP in pilot zones increased substantially after implementing the GFRI pilot policy, confirming that the policy had a strong incentive effect. The corresponding promoting effect was particularly significant for non-state-owned companies, the eastern and central regions, and firms in the growth stage. Further mechanism analysis revealed that the GFRI pilot policy can stimulated firms’ TFP by promoting technological innovation and improving resource allocation efficiency. This paper’s empirical findings are essential in improving relevant policies and expanding the pilot zones.

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Section: Resultssupporting

confidence: 89%

“…Albeit with the above robustness test methods, Column (3) in Table 4 drops the firms in the year before the green finance pilot policy came into impact to avoid the so-called “anticipation effect” [ 88 ]. Column (4) in Table 4 moves the green finance pilot policy implementing time forward for three years to exclude the ex-ante effect.…”

Section: Resultsmentioning

confidence: 99%

The policy effect of green finance reform and innovations: Empirical evidence at the firm level

Dong

Tao

2022

PLoS ONE

Self Cite

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“…Several studies have unearthed that China's CETS policy can indeed invigorate the upgrading of the industrial structure [ 38 ]. In other words, the advancement or adjustment of industrial structure mediates the reduction of carbon emissions [ 39 , 40 ]. However, the upgrading of the industrial structure is shaped by a confluence of factors.…”

Section: Literature Reviewsmentioning

confidence: 99%

Political incentives in market-based environmental regulation: Evidence from China’s carbon emissions trading scheme

Bai,

Ma,

Wang

et al. 2024

Heliyon

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“…In addition, CTPs induce technological innovation effects, energy substitution, and structural upgrading effects; therefore, they enable the realization of green innovation potential [14]. Tao and Goh (2023) [15] demonstrated the mediating effects of total energy consumption, energy consumption structure, and industrial structure upgrades in the incentivizing role of CTPs on carbon emission intensity reduction. In light of China's CTP policy, Pan et al (2022) [16] highlighted the important moderating roles of government participation and high carbon trading market efficiency on an enterprise's TFP.…”

Section: Literature Review and Research Hypothesis 21 Research Progre...mentioning

confidence: 99%

Heterogeneous Effects of China’s Carbon Market on Carbon Emissions—Evidence from a Regression Control Method

Liu,

Fu,

Wang

2023

Sustainability

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Carbon trading markets are crucial policy instruments in carbon emission reduction and carbon neutrality. Yet, China’s pilot programs encounter diverse operational modes and environmental factors that might impact their effectiveness. This study uses panel data from 30 provinces (2000–2019) in China and the regression control method to evaluate and analyze the heterogeneous effects of carbon trading pilots (CTPs) on emission reduction. Results reveal three types of CTP effects which are as follows: reducing both total carbon emissions (TCEs) and carbon intensity (CI) as noticed in Shanghai; decreasing CI while increasing TCE as seen in Beijing, Tianjin, Guangdong, and Hubei; and raising both TCE and CI as observed in Chongqing and Fujian. Significantly, market mechanisms in carbon pricing and state intervention, including of state-owned enterprises, play notable roles in these effects. Furthermore, CTP policies display both intensity reduction and energy rebound effects; the direction of carbon emission reduction relies on the balance between these effects. The findings offer empirical support to enhance carbon market effectiveness and provide valuable insights for regions in China and globally in order to tailor policies based on their specific conditions.

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Effects of Carbon Trading Pilot on Carbon Emission Reduction: Evidence from China’s 283 Prefecture-Level Cities

Cited by 9 publications

References 71 publications

The policy effect of green finance reform and innovations: Empirical evidence at the firm level

The policy effect of green finance reform and innovations: Empirical evidence at the firm level

Political incentives in market-based environmental regulation: Evidence from China’s carbon emissions trading scheme

Heterogeneous Effects of China’s Carbon Market on Carbon Emissions—Evidence from a Regression Control Method

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