Impact of carbon trading on agricultural green total factor productivity in China

Abstract

The implementation of the carbon trading system has a great impact on all aspects of the economy and society. Agriculture, which accounts for 34% of global carbon emissions, has also been hit hard as a high carbon emitting industry (Crippa M, 2021). This study uses agricultural green total factor productivity as an important indicator of agricultural green sustainable development, and analyzes the impact of China's carbon trading system on agricultural green total factor productivity, which can provide a reference for other countries that want to improve agricultural sustainable development and implement carbon trading. In this paper, the producer theory is used to build the basic model, and the differences-in-differences (DID) method is used to analyze the provincial data samples in China from 2000 to 2020. It is found that: the implementation of carbon trading pilot policy has a significant promotion effect on agricultural green total factor productivity; and after the implementation of carbon trading policy, with the advancement of time, under the constraint of reducing carbon quota, the promotion effect of agricultural green total factor productivity becomes stronger and stronger. Even in the regions without carbon trading pilot program, the policy spillover effect will also be obvious and promote the development of green total factor productivity of agriculture in this area.