The potential influence of the carbon market on clean technology innovation in China

Lin, Shen; Wang, Banban; Wu, Wei; Qi, Shaozhou

doi:10.1080/14693062.2017.1392279

Cited by 44 publications

(12 citation statements)

References 34 publications

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“…A common concern for policy-induced innovation is that increased low-carbon innovation in a firm may crowd out other innovative activities 25,26 . The disproportionate policy impacts would be particularly troublesome if other innovation of high social value were delayed or suspended, creating adverse side-effects of climate mitigation.…”

Section: Resultsmentioning

confidence: 99%

“…Our findings show significant induced innovation effects of the ETS both directly on ETS firms and indirectly on large non-ETS firms on top of other climate policy influences. The identified effects help to sort out previously inconsistent research findings related to but not directly from emissions trading in China: policy announcement in 2011 of ETS pilots has a positive effect on innovation from a small set of publicly listed firms possibly but not necessarily subject to emissions trading 23 ; the aggregate effect at the regional level was arguably negative 24 ; energy price, as a proxy for carbon price, has a positive effect on clean innovation but a negative one on other innovation 25 . By using the same estimation method, our results are directly comparable to the innovation effect of the EU ETS 22 , showing a similar, significant effect on individual ETS firms but limited impacts at the regional level.…”

Section: Introductionmentioning

confidence: 98%

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Low-carbon innovation induced by emissions trading in China

et al. 2019

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Emissions trading scheme (ETS) has been adopted by an increasing number of countries and regions for carbon mitigation, but its actual effect depends on specific program design and institutional context. Before launching the world largest ETS, China experimented with seven independent regional pilots, whose effects are only indirectly explored. Here we provide firm-level evidence of the innovation effect directly from China’s pilot emissions trading, based on latest patenting information and a quasi-experimental design. China’s pilots increase low-carbon innovation of ETS firms by 5–10% without crowding out their other technology innovation. The increase from ETS firms accounts for about 1% increase of the regional low-carbon patents, while a similar increase from large non-ETS firms is also induced by the ETS. Most importantly, the effect is not associated with permit price, auction, or firm characteristics, but is driven by mass-based allowance allocation. A rate-based approach, however, is adopted by China’s national market.

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Section: Resultsmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 98%

Low-carbon innovation induced by emissions trading in China

et al. 2019

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“…Emissions prices are significantly lower than those in other scenarios. A low emission permit price that deviates from the normal level gives less incentives for entities to upgrade their low-carbon technologies or to switch to clean energies (Lin, Wang, Wu, & Qi, 2017). From this perspective, more polices, including a research subsidy policy and other low-carbon technology promoting policies, should also be considered to complement the ETS.…”

Section: Resultsmentioning

confidence: 99%

Evaluating various choices of sector coverage in China’s national emissions trading system (ETS)

Qian

Zhou

2018

Climate Policy

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Sector coverage matters greatly in designing China's national emissions trading system (ETS), with issues to be considered including impacts on emission reduction, economic and social welfare change, and carbon leakage to uncovered sectors. In this article, we evaluate various policy choices by setting up six scenarios in a China computable general equilibrium model. To investigate the optimal choice determining which sectors should be covered, criteria such as emission scale, trade intensity, emission intensity and complex indicators of optimal carbon revenue are compared. In addition, double counting of electricity production-and consumption-related carbon emissions is also included as a specific scenario, as it might be utilized to deal with the problem of price regulation of the electricity sector in China. The simulation result shows that the emissions intensity scenario can achieve the best emissions reduction effect, and the optimal carbon revenue scenario can achieve the best economic and welfare effect. All scenarios show that partial coverage will not lead to significant inter-sectoral carbon leakage in the current construction of the national ETS. Although the double counting of emissions from the electricity sector can lead to the lowest inter-sectoral carbon leakage rate, its emissions reduction effect, economic effect and welfare effect are all inferior to the other scenarios. Key policy insights. Sector coverage matters significantly in the design of an emissions trading system.. Effects on emission reduction, welfare change and carbon leakage are key issues to consider in determining the sector coverage.. Coverage of sectors with high emissions and emission intensities will lead to the highest emission reduction effects and will also moderate economic and welfare losses. Double counting of electricity-related emissions will lead to efficiency loss but lower carbon leakage ARTICLE HISTORY

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“…(5) Green technology patent gtech . According to international patent classification of green patent list ( http://www.wipo.int/classifications/ipc/en/est/ ) in the World Intellectual Property Organization (WIPO), we manually search for the relevant data by setting types of patents, IPC classification codes, and addresses of inventors from the State Intellectual Property Office (Lin et al 2018 ).…”

Section: Model and Data Source Descriptionmentioning

confidence: 99%

The air pollution effect of government economic growth expectations: evidence from China’s cities based on green technology

Wang

Dong

et al. 2021

Environ Sci Pollut Res

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Based on the Government Work Report of 265 prefecture-level cities in China from 2004 to 2015, this article combines economic growth expectations data and keyword capture to explore the relationship between government economic growth expectations and air pollution. The main results are as follows: (1) The economic growth expectations of local governments, and the "increment" between prefecture-level and provincial governments' growth expectations for economic growth have significantly increased air pollution. The certainty and completion degree of economic growth expectations have different effects on air pollution, and the impact of the expected rigid constraint and overfulfilled degree on air pollution are prominent. When the city's real economic growth exceeds 1%, 2%, 3%, and 4% of growth expectations, respectively, SO 2 emissions will increase by 10.577%, 10.671%, 11.825%, and 16.296%, and PM 2.5 concentration will increase by 2.115%, 2.503%, 3.592%, and 4.421%.(2) The government's annual economic growth expectations have different effects on different types of technological innovation. For every 1% increase in the government's economic growth expectations, the green technology will be reduced by 0.956% which exacerbates regional air pollution. Furthermore, the green technology can explain 6.5% of air pollution induced by government economic growth expectations.

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The potential influence of the carbon market on clean technology innovation in China

Cited by 44 publications

References 34 publications

Low-carbon innovation induced by emissions trading in China

Low-carbon innovation induced by emissions trading in China

Evaluating various choices of sector coverage in China’s national emissions trading system (ETS)

The air pollution effect of government economic growth expectations: evidence from China’s cities based on green technology

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