Reducing Carbon Emission Intensity Through Carbon Emissions Trading Policy: Evidence From 283 Chinese Cities
Year: 2025
Type: article
Abstract: Based on panel data from 283 Chinese cities spanning 2005-2021, this study employs a multiperiod difference-in-differences (DID) model and finds that the carbon emission trading policy significantly reduces urban carbon emission intensity.This conclusion remains robust after a series of tests, including the parallel trend test, placebo test, and PSM-DID analysis.Mechanism analysis shows that the policy lowers carbon emission intensity by promoting green technological innovation, upgrading industrial structures, and adjusting the energy mix.In terms of heterogeneity, the reduction in carbon emission intensity is more pronounced in cities with high-digitalization levels than in low-digitalization cities.The policy's carbon emission reduction effects are also stronger in key urban agglomerations such as the Beijing-Tianjin-Hebei region, the Yangtze River Delta, the middle reaches of the Yangtze River, and the Chengdu-Chongqing region.From a spatial perspective, the carbon emission trading policy not only lowers carbon emission intensity within pilot cities but also generates spillover effects that reduce carbon emissions in neighboring areas.Regarding economic outcomes, the policy achieves coordinated gains in carbon emission reduction and green growth.The findings of this study provide policy-relevant insights for achieving a win-win outcome between environmental protection and economic development in China.
Authors: H.P. SHI, Y.P. YANG
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W4413190355