Abstract
The pilot policy of carbon emissions trading rights covers six heavy pollution industries in the manufacturing industry and has achieved considerable emission reductions. Based on enterprise behavior, this study analyzes the impact of the carbon emissions trading rights pilot policy on the productivity of manufacturing enterprises. In addition, we examine whether the pilot policy can aid in the transformation and upgrading of China’s manufacturing industry. Furthermore, we examine the influence of carbon emissions trading rights on manufacturing enterprises of different sizes and with different property rights. The results show that the trading rights have not produced a “Porter effect” on the productivity of manufacturing enterprises in China or in subsamples based on the nature of enterprise ownership. The impact of the carbon trading rights on the productivity of state-owned manufacturing enterprises in the pilot provinces is based on the compliance cost hypothesis. Therefore, the pilot policy has yet to achieve coordinated economic, social, and environmental development. Lastly, we put forward several policy suggestions on the coordinated development of a carbon trading policy and manufacturing enterprises from the perspective of the government, enterprises, and society.
Highlights
Climate change, characterized by global warming, is one of the greatest threats to the realization of global sustainable development
This study examines whether carbon emissions trading rights can help to transform the manufacturing industry, improving the productivity of manufacturing enterprises
From an enterprise behavior perspective, this study used a difference-in-differences model to examine whether the pilot carbon trading rights policy can boost the transformation of manufacturing enterprises and realize the Porter effect
Summary
Climate change, characterized by global warming, is one of the greatest threats to the realization of global sustainable development. The global response to the threat of global warming includes the United Nations Framework Convention on Climate Change, which aims to control greenhouse gas emissions (e.g., carbon dioxide), and the Paris Agreement, adopted at the United Nations Climate Conference in 2015. The objective of these initiatives is the coordinated development of the economy, the environment, and society. We examine whether the carbon trading policy based on a market mechanism can aid in the economic and social development of China in order to integrate the economy, the environment, and society
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