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Reduction Effect of Carbon Emission Trading Policy in Decreasing PM 2.5 Concentrations in China

Author

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  • Zhixiong Weng

    (Institute of Circular Economy, Beijing University of Technology, Beijing 100124, China)

  • Cuiyun Cheng

    (Chinese Academy for Environmental Planning, Beijing 100045, China)

  • Yang Xie

    (School of Economics and Management, Beihang University, Beijing 100191, China
    Laboratory for Low-Carbon Intelligent Governance, Beihang University, Beijing 100191, China)

  • Hao Ma

    (BGRIMM Technology Group, Beijing 100160, China)

Abstract

Carbon emissions trading is a market-based tool for solving environmental issues. This study used a difference-in-differences (DID) approach to estimate China’s carbon trading pilots to reduce PM 2.5 concentrations. The results of this quasi-natural experiment show that the carbon trading policy effectively reduces PM 2.5 by 2.7 μg/m 3 . We used a propensity score matching (PSM-DID) method to minimize selection bias to construct a treatment and a control group. The results show the policy effect is robust, with a PM 2.5 concentration reduction of 2.6 μg/m 3 . Furthermore, we employed a series of robustness checks to support our findings, which notably indicate that the effect of carbon trading on reducing PM 2.5 differs across regions over the years. The western region of China tends to be the most easily affected region, and the early years of carbon trading show slightly greater reduction effects. Our findings provide valuable policy implications for establishing and promoting carbon trading in China and other countries.

Suggested Citation

  • Zhixiong Weng & Cuiyun Cheng & Yang Xie & Hao Ma, 2022. "Reduction Effect of Carbon Emission Trading Policy in Decreasing PM 2.5 Concentrations in China," IJERPH, MDPI, vol. 19(23), pages 1-12, December.
    • Handle: RePEc:gam:jijerp:v:19:y:2022:i:23:p:16208-:d:992851
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