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The impact of carbon emissions trading on agricultural economic development: Evidence from China's carbon emissions trading pilot policies

Year: 2025

Type: article

Abstract: This study uses a panel dataset of various provinces and cities in China from 2007 to 2022 to investigate the impact of carbon emissions trading on the agricultural economy, applying a difference-in-differences (DID) model. The findings indicate that carbon emissions trading serves as a driving force for the growth of the agricultural economy, primarily by improving agricultural technical efficiency. Additionally, a threshold effect is observed in the role of green technology innovation in this relationship. A heterogeneity analysis further reveals that carbon emissions trading has a significant positive effect on agricultural economic growth in the eastern region, while its impact is less pronounced in the central and western regions.

Source: International Review of Economics & Finance

DOI: 10.1016/j.iref.2025.104150

Authors: Wen Zhao, Dongping Zhang, Yufei Zhao

Institutions: Zhengzhou Normal University, Henan Agricultural University

Language: English

Topic: Climate Change Policy and Economics

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Climate action, Zero hunger, Decent work and economic growth, Industry, innovation and infrastructure

Open Access status: gold

Estimated APC paid: $1,930