Pollution, Property &amp; Prices.

Hass, Jerome E.; Dales, J. H.

doi:10.2307/2391111

Cited by 12 publications

(9 citation statements)

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“…In relevant studies, economists place their hopes on the emission trading system. They believe that the CETS with the market mechanism as the core has typical incentive compatibility characteristics, and a properly designed CETS can provide compensation for enterprise externalities in the form of property rights and prices, so as to achieve the purpose of correcting the enterprise behavior without damaging the production enthusiasm (Hass and Dales, 1969;Montagnoli and De Vries, 2010;Wu and Wang, 2022).…”

Section: Open Access Edited Bymentioning

confidence: 99%

“…Therefore, if environmental control is relaxed in the later stage, the emission level of enterprises will rebound immediately. In order to solve this contradiction, Hass and Dales (1969) combined the property right mechanism with the transaction mechanism and put forward the related concepts of the emission trading system. The introduction of the market mechanism turns the uncertainty risk brought by carbon emission control into price shock, providing a buffer zone for enterprises to adjust production and investment decisions, thus producing a stronger ability to achieve desired goals.…”

Section: Open Access Edited Bymentioning

confidence: 99%

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How the carbon emissions trading system affects green total factor productivity? A quasi-natural experiment from 281 Chinese cities

2023

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China’s emissions trading system is often cited as a model for developing countries using market-based means to solve pollution problems, but few have objectively assessed the solution from a productivity perspective. Therefore, in this study, the green total factor productivity (GTFP) of 281 prefecture-level cities was calculated by using the DEA–Malmquist method, and the policy effects were evaluated by setting up quasi-natural experiments. The results show that the carbon emissions trading system has a positive contribution to GTFP; when facing a more compatible carbon trading system, enterprises will choose two paths: innovation compensation and industrial upgrading to improve GTFP, so as to get rid of the cost constraints caused by carbon emission control; the policy effect of the carbon emissions trading system varies significantly in different regions. In the economically developed eastern region, the effect of policy implementation is relatively significant, while the effect of policy implementation in the western region is not significant. Further analysis shows that as a market-based environmental policy, the incentive effect of the carbon trading system relies on a perfect market system. This study provides empirical evidence and policy enlightenment for developing countries to build and improve the emissions trading system.

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Section: Open Access Edited Bymentioning

confidence: 99%

Section: Open Access Edited Bymentioning

confidence: 99%

How the carbon emissions trading system affects green total factor productivity? A quasi-natural experiment from 281 Chinese cities

2023

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“…The concept of ETS originated with the economist Dales in the 1990s. Dales (1968) [ 27 ] introduced the theory of property rights based on Coase’s theorem into environmental pollution control, arguing that pollution is a property right granted by the government to enterprises, and pollution rights can be transferred to enterprises through market means, forcing enterprises to carry out environmental innovation. Before the implementation of ETS, high carbon-emitting enterprises faced relatively lenient carbon emission reduction constraints, while the introduction of market measures to control CO 2 emissions, increased the actual carbon emission costs, production costs, and expected future costs for enterprises.…”

Section: Background Of Pilot Ets and Research Hypothesismentioning

confidence: 99%

Emission Trading System, Carbon Market Efficiency, and Corporate Innovations

Zhu

Long

Gong

2022

IJERPH

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Taking China’s emission trading system (ETS) pilot in 2013 as a quasi-natural experiment, this paper uses the difference-in-differences (DID) models to study whether the regional pilot ETS can promote technological innovation in enterprises. In addition, this paper examines the influence mechanism of the ETS innovation effect, with a focus on three key dimensions of the carbon market efficiency: market price effectiveness, market product diversity, and market order normativity. The results show that the pilot ETS has significantly promoted the technological innovation of regulated enterprises, specifically, 1.405*** for the total R&D investment, and 2.783*** for the number of patent applications. Moreover, the regional carbon price has a positive moderating effect on the innovation effect of ETS. Meanwhile, the innovation effect is more significant when the gap between the carbon price and the marginal abatement cost (MAC) of CO2 is smaller, when the carbon financial derivatives are more abundant, or when the local market supervision is stronger. This study provides empirical evidence for the improvement of the national unified market and provides useful policy implications for developing countries to design ETS suitable for their national conditions.

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“…Economists have been concerned about the contradiction between greenhouse gas emissions and endogenous economic growth (innovation) for a long time and attempted to solve the incentive compatibility between them through the property rights trading mechanism (Hass and Dales, 1969;Porter, 1995). Since China joined the Kyoto Protocol in 1997, it has imposed strict controls on carbon dioxide emissions, among them, the credit lever with environmental protection conditions has become an important tool to achieve environmental goals.…”

Section: Introductionmentioning

confidence: 99%

“…Carbon emission control internalized exogenous environmental costs, which had an impact on enterprises' production and operation (Stavins, 1996). A large number of credits with environmental protection requirements raises the cost of nancing for enterprises, which cannot reserve more pro ts to absorb the risks of R&D. To solve this problem, Hass and Dales (1969) proposed that the market mechanism should be used to guide enterprises to neutralize external costs, that is, enterprises should be given emission rights and be allowed to trade them, so the operating environment of enterprises will be improved with the help of property rights mechanism and liquidity. A properly designed emission trading system will guide enterprises to continue technological research and development through market signals, and nally nd a new equilibrium point between marginal revenue and marginal cost, which is veri ed in the research of Cui et al (2018).…”

Section: Introductionmentioning

confidence: 99%

How Carbon Emission Trading Effects Enterprise Technological Innovation: A Quasi-Natural Experiment from China

Shao

Yang

Chen

2022

Preprint

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As an important policy tool to realize the vision of "carbon peaking and carbon neutralization", the carbon emission trading system is considered to be useful for alleviating enterprise financing constraints and stimulating high-quality technological innovation. Based on the data of Chinese listed companies, this paper tests the above policy effects by setting a quasi-natural experiment. The conclusions are as follows: (1) The introduction of the market mechanism for carbon emission control can improve the quality of enterprise R & D, and the mitigation of financing constraints has a positive contribution to this improvement; (2) The innovation incentive effect of carbon emission trading system is significant in the sample of state-owned enterprises with government credit endorsement, but it shows the opposite statistical results in non-state-owned enterprises; (3) The incentive effect of carbon emission trading system on innovation quality is higher in heavy pollution industries than others. The above conclusions have important reference value for developing countries to achieve the dual goals of high-quality economic development.

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Pollution, Property & Prices.

Cited by 12 publications

References 0 publications

How the carbon emissions trading system affects green total factor productivity? A quasi-natural experiment from 281 Chinese cities

How the carbon emissions trading system affects green total factor productivity? A quasi-natural experiment from 281 Chinese cities

Emission Trading System, Carbon Market Efficiency, and Corporate Innovations

How Carbon Emission Trading Effects Enterprise Technological Innovation: A Quasi-Natural Experiment from China

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