Empirical Study on Effect of Carbon Emission Regulations on Intra-product Specialization Technology of China

Abstract

In recent years, carbon emission regulations in response to global climate change have been issued in succession or will be issued soon, while world trade is gradually shifting from inter-industry trade to intra-product trade. In this paper, through theoretical and empirical analysis, it is found that under intra-product specialization background, carbon emission regulations of developed countries has hindered the technological progress of the developing countries. The carbon regulation will affect the learning by doing, R&D investment and technology diffusion by raising the threshold, eroding profits and setting up technical barriers for the developing countries to participate in the intra-product specialization and trade. In addition, there are limited industrial differences in the effects of carbon emission regulations of developed countries on the technological progress of developing countries in participation in intra-product specialization and trade. The greater the technical content and scale of the industry are, the stronger the constraint of carbon emission regulations on the intra-product trade technology will be. The more intensive the capital is, the less the hindering effect of carbon emission regulations on export technology for intra-industry trade will be.