Abstract

The carbon emission trading system (ETS) has become one of the most crucial environmental regulations for emission mitigation and energy conservation in China. This thesis uses the difference-in-difference (DID) model to analyze the causal influence of China's ETS on carbon emission performance. The results show that the implementation of the ETS is an effective way to mitigate carbon intensity and total carbon dioxide emissions (12%), thus promoting carbon emission reductions. In contrast, economic development, energy intensity and population size hindered the carbon reduction process, while industrial structure had no significant impact on carbon reduction. Further PSM-DID models confirmed the reliability of the above conclusions. Based on these conclusions, this study provides inspiration and suggestions for the implementation of the nationwide ETS in the new stage of environmental governance.

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