Abstract
The carbon emission trading policy attributes carbon dioxide emission rights to commodities, representing an important exploration to reduce carbon emissions by the market mechanism. Since 2013, China has implemented the carbon emission trading policy. In order to study whether the carbon emission reduction effect of emission trading policy in pilot areas and what is the pathway, this paper uses multi-period difference-in-differences method and the medintion effect method. An empirical analysis of panel data from 283 prefecture-level cities in China between 2006 and 2019.The research findings demonstrate that: (1) The policy about carbon emission trading significantly reduced carbon emissions,which is still valid after a series of robustness tests, and had a synergistic effect. (2) The policy primarily promotes carbon dioxide emission reduction through innovation in green technology and adjustments in industrial structure. (3) In comparison to the eastern and western regions, the policy performs better in central regions. Furthermore, the effectiveness of emission reduction depends on the intensity of environmental regulations, thus, stricter regulations are more conducive to carbon reduction. This paper provides strong evidence to the expansion of carbon emission trading pilots, and guides the operation of carbon emission trading market in China.
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