Synergistic effects of a carbon emissions trading scheme on carbon emissions and air pollution: The case of China

Abstract

Facing the dual pressures of the exacerbation of global climate change and the deterioration of the domestic environment caused by pollution, China has clearly adopted environmental regulatory measures to improve the climate environment. One measure is the carbon emissions trading scheme (CETS), which serves as a notable example of the country's efforts to improve the climate environment. We gathered panel data from 285 prefecture‐level cities in China from 2005 to 2018 and used the Difference‐in‐Differences (DID) model to empirically examine the synergistic effects of the CETS on carbon emissions and air pollution. The results indicate that CETS have been effective in reducing urban carbon emissions by approximately 9.8%. Additionally, the schemes have caused a simultaneous reduction in particulate matter (PM)2.5 emissions by 11.7% and sulfur dioxide (SO2) emissions by approximately 9.7%, mitigating urban air pollution in China. It demonstrates that the scheme has significant synergistic effects on carbon emissions and air pollution. To achieve synergistic effects of CETS, effective measures include reducing energy intensity and upgrading the industrial structure. The implementation of CETS had heterogeneity in different conditions, and the synergistic effect of the scheme is more significant in eastern regions, large cities, and the final industrial stage. Our findings offer innovative solutions for the integrated management of carbon emissions and air pollution and provide valuable insights for policymakers to enhance China's CETS. Integr Environ Assess Manag 2023;00:1–13. © 2023 SETAC

Analyzing Coupling Coordination of Pollution and Carbon Reduction with High-Quality Economic Development: A Case Study of China’s Yangtze River Economic Belt

“…Further, taking sulfur dioxide, nitrogen oxides, total suspended particulate, and CO 2 as measures, Mao et al [20] construct the equivalent emission index of air pollutants, and find that synergistic emission reductions of air pollution and greenhouse gases have linear cumulative benefits. And Li et al [21] examines 285 cities in China during 2005-2018, and find that the carbon emissions trading reduces urban CO 2 , particulate matter 2.5, and sulfur dioxide by 9.8%, 11.7%, and 9.7%, respectively. On this basis, as the Greenhouse Gas and Air Pollution Interactions and Synergies model-China model is a combination of the Greenhouse Gas and Air Pollution Interactions and Synergies model and China's economic development, which accurately simulates the release of six greenhouse gases and six air pollutants in China, Lu et al [22] finds the highest synergistic benefits of particulate matter 2.5 with CO 2 in the Beijing-Tianjin-Hebei region, based on the Greenhouse Gas and Air Pollution Interactions and Synergies model-China model.…”

“…From the above literature review, it can be seen that the relationship between economic development and environmental pollution is an eternal topic and always in the spotlight. From the above literature review, it can be seen that the existing literature mostly carries out unilateral measurement of economic development or environmental pollution, and the indicators of environmental pollution are mostly single pollution indicators [18,21]. Few studies have integrated environmental pollution and economic development into a unified framework to examine performance levels [14,37].…”