Shooting two hawks with one arrow: Could China's emission trading scheme promote green development efficiency and regional carbon equality?

Zhang, Shengling; Wang, Yao; Hao, Yu; Liu, Zhiwei

doi:10.1016/j.eneco.2021.105412

Cited by 202 publications

(64 citation statements)

References 64 publications

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“…Since the emergence of carbon emission trading policy, the research on the effectiveness of the carbon emission trading policy has been constantly emerging. Among them, as for the contribution of the carbon emission trading policy to environmental governance, most scholars found that whether the developed countries represented by the EU countries (Nordhaus, 2007;Stern, 2007) or the developing countries represented by China (Xiu et al, 2015;Gao et al, 2020;Xuan et al, 2020), the carbon emission trading policy effectively reduces carbon dioxide emissions, improves carbon emission allocation and efficiency (Chang, 2012) and regional carbon equalization (Zhang et al, 2021), and contributes to the realization of "carbon peak" in advance (Wu and Zhu, 2021).…”

Section: Literature Reviewmentioning

confidence: 99%

Does the Carbon Emission Trading Policy Promote Foreign Direct Investment?: A Quasi-Experiment From China

Shao

Yu²,

Chen³

2022

Front. Environ. Sci.

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As an important policy to promote global energy transition and carbon emission reduction, does the carbon emission trading policy help promote foreign direct investment inflows, thus alleviating the contradiction between environment and economic development? Based on the “OLI paradigm,” by using the data of China’s 30 provinces from 2007 to 2016 and taking China’s pilot implementation carbon emission transaction policy in 2013 as the natural experiment, so as to construct a differences-in-differences model, this study empirically analyzed the impact of carbon emission transaction policies on foreign direct investment and conducted an in-depth analysis and discussion on related heterogeneity. The empirical results show that 1) there is a positive correlation between the carbon emission trading policy and foreign direct investment; 2) the results of heterogeneity analysis show that the effect of carbon emission trading policy on the increase in FDI is more significant in the areas with a stronger environmental regulation, a higher degree of marketization, and low energy consumption. The conclusions of this study enrich the analysis of the effectiveness of government environmental policies from the perspective of both environment and economic development and provide relevant policy enlightenment for developing countries in environmental regulation and attracting foreign direct investment.Systematic Review Registration: [website], identifier [registration number].

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Section: Literature Reviewmentioning

confidence: 99%

Does the Carbon Emission Trading Policy Promote Foreign Direct Investment?: A Quasi-Experiment From China

Shao

Yu²,

Chen³

2022

Front. Environ. Sci.

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“…Empirical analysis supports Porter's hypothesis that technological innovation has an intermediary effect on the impact of emissions trading on the upgrading of industrial structure. Zhang S. et al (2021) verified the positive effects of China's ETS and found that China's ETS significantly improved the efficiency of green development and regional carbon equality. Mechanism analysis further shows that China's ETS promotes regional carbon equality by increasing green total factor productivity and reducing investment in carbon-intensive industries in pilot provinces, confirming the Porter hypothesis and the effect of investment transfer.…”

Section: Research On Policy Effects Of Emission Trading Schemementioning

confidence: 82%

Can Emission Trading Scheme Improve Carbon Emission Performance? Evidence From China

et al. 2021

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This paper explores the effect of China’s emission trading scheme (ETS) pilot policy implemented during 2013-2014 on carbon emission performance. Adopting the Difference-in-Difference (DID) model, we find that: 1) China’s ETS pilot policy can significantly improve the carbon emission performance of listed companies in the pilot provinces. 2) The heterogeneity analysis shows that the carbon emission performance of listed companies in the eastern coastal pilot areas has improved significantly, which is not significant in the central and western pilot areas. 3) We find that China’s ETS pilot policy can significantly improve innovation capabilities of listed companies, suggesting that innovation is a channel for the impact of the China’s ETS pilot policy on carbon emission performance in the pilot provinces. Overall, our study shows that ETS pilot policy has played a governance role in China and improved carbon emission performance. We further highlight some important policy implications with respect to helping companies save energy and reduce emissions, and promoting the further improvement of China’s ETS pilot policy.

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“…A similar study using propensity score matching-DID found that the newly revised Environmental Protection Law promotes the profitability of listed companies [41]. DID was also used to assess the effect of China's carbon emissions trading system on green development efficiency and regional carbon equality, the results of which also supported the Porter hypothesis [43]. However, further evidence suggested that the Porter hypothesis was not validated.…”

Section: Literature Reviewmentioning

confidence: 99%

Booster or Stumbling Block? The Role of Environmental Regulation in the Coupling Path of Regional Innovation under the Porter Hypothesis

Nie

et al. 2022

Sustainability

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In the 2018 Global Environmental Performance Index, China’s global air quality rank was fourth from last, indicating a more pronounced conflict between the environment and development compared with other countries. Because of the vastness of China’s land area, the development of different regions is imbalanced. The achievement of the stipulated goal to be among the top innovative countries in the world by 2035 not only depends on the economically developed eastern part of China but also on the relatively economically underdeveloped central, western, and northeastern parts. In this context, this paper uses time-varying qualitative comparative analysis to explore how the coupling paths of environmental regulation affect regional innovation. The results show that: (1) In most cases at the overall level of China, the Porter hypothesis is supported, and environmental regulation can play the role of a “booster” and stimulate regional innovation. In a few cases, however, the Porter hypothesis is not supported. (2) The Porter hypothesis is also supported in most cases at the regional level, where environmental regulation is mostly a “booster” for regional innovation in the east, center, west, and northeast. (3) Comparison of regional heterogeneity shows that environmental regulation is more important for stimulating regional innovation in the east than in the center, west, and northeast. This study helps to identify the role of environmental regulation in regional innovation. Moreover, it also helps to understand the emphasis China placed on environmental management during the early stages of its economic development.

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Shooting two hawks with one arrow: Could China's emission trading scheme promote green development efficiency and regional carbon equality?

Cited by 202 publications

References 64 publications

Does the Carbon Emission Trading Policy Promote Foreign Direct Investment?: A Quasi-Experiment From China

Does the Carbon Emission Trading Policy Promote Foreign Direct Investment?: A Quasi-Experiment From China

Can Emission Trading Scheme Improve Carbon Emission Performance? Evidence From China

Booster or Stumbling Block? The Role of Environmental Regulation in the Coupling Path of Regional Innovation under the Porter Hypothesis

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