IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v14y2022i16p10216-d890406.html
   My bibliography  Save this article

Analysis of the Impact of Carbon Trading Policies on Carbon Emission and Carbon Emission Efficiency

Author

Listed:
  • Yizhang He

    (School of Economics, Lanzhou University, Lanzhou 730106, China)

  • Wei Song

    (School of New Media, Beijing Institute of Graphic Communication, Beijing 102600, China)

Abstract

As the carbon trading scheme has a significant impact on China’s sustainable economy and environmental protection, the policy influence of carbon emissions and carbon emission efficiency in pilot provinces has become a key research topic. Based on the data of 30 provinces and cities in China from 2007 to 2018, this paper estimates carbon emission efficiency by using a super-efficiency SBM model, and the difference-in-difference method is adopted to investigate the policy’s influence. The results show that: (1) carbon trading policies have a significant carbon emission reduction effect and a positive effect on carbon emission efficiency in pilot areas. (2) There is a dynamic effect that increases year by year, and the policies have a synergistic emission reduction effect on CO 2 and SO 2 . (3) The carbon trading policy has different effects on carbon emission efficiency depending on pilot areas. Before and after the implementation of the policy, carbon emission efficiency in Tianjin remained almost unchanged, while the carbon emission efficiency in Hubei and Chongqing increased significantly. Although the efficiency of Shanghai and Guangdong remains at the forefront, they fluctuate greatly. Beijing is the only city to remain a frontier every year, showing significant policy impact.

Suggested Citation

  • Yizhang He & Wei Song, 2022. "Analysis of the Impact of Carbon Trading Policies on Carbon Emission and Carbon Emission Efficiency," Sustainability, MDPI, vol. 14(16), pages 1-20, August.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:16:p:10216-:d:890406
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/14/16/10216/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/14/16/10216/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Cai, Xiqian & Lu, Yi & Wu, Mingqin & Yu, Linhui, 2016. "Does environmental regulation drive away inbound foreign direct investment? Evidence from a quasi-natural experiment in China," Journal of Development Economics, Elsevier, vol. 123(C), pages 73-85.
    2. Fang, Guochang & Tian, Lixin & Liu, Menghe & Fu, Min & Sun, Mei, 2018. "How to optimize the development of carbon trading in China—Enlightenment from evolution rules of the EU carbon price," Applied Energy, Elsevier, vol. 211(C), pages 1039-1049.
    3. Yamaji, Kenji & Matsuhashi, Ryuji & Nagata, Yutaka & Kaya, Yoichi, 1993. "A study on economic measures for CO2 reduction in Japan," Energy Policy, Elsevier, vol. 21(2), pages 123-132, February.
    4. Yuan, Chaoqing & Liu, Sifeng & Fang, Zhigeng & Xie, Naiming, 2010. "The relation between Chinese economic development and energy consumption in the different periods," Energy Policy, Elsevier, vol. 38(9), pages 5189-5198, September.
    5. Xiong, Ling & Shen, Bo & Qi, Shaozhou & Price, Lynn & Ye, Bin, 2017. "The allowance mechanism of China’s carbon trading pilots: A comparative analysis with schemes in EU and California," Applied Energy, Elsevier, vol. 185(P2), pages 1849-1859.
    6. Shengxian Ge & Xianyu Yu & Dequn Zhou & Xiuzhi Sang, 2019. "The Integrated Effect of Carbon Emissions Trading and Pollution Rights Trading for Power Enterprises—A Case Study of Chongqing," Sustainability, MDPI, vol. 11(11), pages 1-17, June.
    7. Bai, Caiquan & Du, Kerui & Yu, Ying & Feng, Chen, 2019. "Understanding the trend of total factor carbon productivity in the world: Insights from convergence analysis," Energy Economics, Elsevier, vol. 81(C), pages 698-708.
    8. Hua Zhang & Sidai Guo & Yubing Qian & Yan Liu & Chengpeng Lu, 2020. "Dynamic analysis of agricultural carbon emissions efficiency in Chinese provinces along the Belt and Road," PLOS ONE, Public Library of Science, vol. 15(2), pages 1-22, February.
    9. Woo, C.K. & Chen, Y. & Olson, A. & Moore, J. & Schlag, N. & Ong, A. & Ho, T., 2017. "Electricity price behavior and carbon trading: New evidence from California," Applied Energy, Elsevier, vol. 204(C), pages 531-543.
    10. Joshua Meltzer, 2012. "Climate Change and Trade--The EU Aviation Directive and the WTO," Journal of International Economic Law, Oxford University Press, vol. 15(1), pages 111-156, March.
    11. Yan, Yaxue & Zhang, Xiaoling & Zhang, Jihong & Li, Kai, 2020. "Emissions trading system (ETS) implementation and its collaborative governance effects on air pollution: The China story," Energy Policy, Elsevier, vol. 138(C).
    12. Siqi Zheng & Matthew E. Kahn, 2017. "A New Era of Pollution Progress in Urban China?," Journal of Economic Perspectives, American Economic Association, vol. 31(1), pages 71-92, Winter.
    13. Gao, Yuning & Li, Meng & Xue, Jinjun & Liu, Yu, 2020. "Evaluation of effectiveness of China's carbon emissions trading scheme in carbon mitigation," Energy Economics, Elsevier, vol. 90(C).
    14. Chen, Zhenling & Yuan, Xiao-Chen & Zhang, Xiaoling & Cao, Yunfei, 2020. "How will the Chinese national carbon emissions trading scheme work? The assessment of regional potential gains," Energy Policy, Elsevier, vol. 137(C).
    15. Fisher-Vanden, Karen & Sue Wing, Ian, 2008. "Accounting for quality: Issues with modeling the impact of R&D on economic growth and carbon emissions in developing economies," Energy Economics, Elsevier, vol. 30(6), pages 2771-2784, November.
    16. Zhang, Wei & Li, Jing & Li, Guoxiang & Guo, Shucen, 2020. "Emission reduction effect and carbon market efficiency of carbon emissions trading policy in China," Energy, Elsevier, vol. 196(C).
    17. Yang, Xinyu & Jiang, Ping & Pan, Yao, 2020. "Does China's carbon emission trading policy have an employment double dividend and a Porter effect?," Energy Policy, Elsevier, vol. 142(C).
    18. Liu, Haomin & Zhang, Zaixu & Zhang, Tao & Wang, Liyang, 2020. "Revisiting China’s provincial energy efficiency and its influencing factors," Energy, Elsevier, vol. 208(C).
    19. Rogge, Karoline S. & Hoffmann, Volker H., 2010. "The impact of the EU ETS on the sectoral innovation system for power generation technologies - Findings for Germany," Energy Policy, Elsevier, vol. 38(12), pages 7639-7652, December.
    20. Li, Wei & Jia, Zhijie, 2016. "The impact of emission trading scheme and the ratio of free quota: A dynamic recursive CGE model in China," Applied Energy, Elsevier, vol. 174(C), pages 1-14.
    21. Zhang, Da & Karplus, Valerie J. & Cassisa, Cyril & Zhang, Xiliang, 2014. "Emissions trading in China: Progress and prospects," Energy Policy, Elsevier, vol. 75(C), pages 9-16.
    22. Zhaohui Chong & Chenglin Qin & Xinyue Ye, 2016. "Environmental Regulation, Economic Network and Sustainable Growth of Urban Agglomerations in China," Sustainability, MDPI, vol. 8(5), pages 1-21, May.
    23. Feng Dong & Chang Qin & Xiaoyun Zhang & Xu Zhao & Yuling Pan & Yujin Gao & Jiao Zhu & Yangfan Li, 2021. "Towards Carbon Neutrality: The Impact of Renewable Energy Development on Carbon Emission Efficiency," IJERPH, MDPI, vol. 18(24), pages 1-23, December.
    24. Lin, Boqiang & Jia, Zhijie, 2019. "What will China's carbon emission trading market affect with only electricity sector involvement? A CGE based study," Energy Economics, Elsevier, vol. 78(C), pages 301-311.
    25. Cotton, Deborah & De Mello, Lurion, 2014. "Econometric analysis of Australian emissions markets and electricity prices," Energy Policy, Elsevier, vol. 74(C), pages 475-485.
    26. Tone, Kaoru, 2002. "A slacks-based measure of super-efficiency in data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 143(1), pages 32-41, November.
    27. Yu, Yantuan & Zhang, Ning, 2021. "Low-carbon city pilot and carbon emission efficiency: Quasi-experimental evidence from China," Energy Economics, Elsevier, vol. 96(C).
    28. Hu, Yucai & Ren, Shenggang & Wang, Yangjie & Chen, Xiaohong, 2020. "Can carbon emission trading scheme achieve energy conservation and emission reduction? Evidence from the industrial sector in China," Energy Economics, Elsevier, vol. 85(C).
    29. Wang, Qiang & Zhang, Chen & Li, Rongrong, 2022. "Towards carbon neutrality by improving carbon efficiency - A system-GMM dynamic panel analysis for 131 countries’ carbon efficiency," Energy, Elsevier, vol. 258(C).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Haiqing Hao & Xue Yang, 2022. "China’s Carbon Market in the Context of Carbon Neutrality: Legal and Policy Perspectives," Sustainability, MDPI, vol. 14(18), pages 1-18, September.
    2. Su Yang & Jie Shen & Hongyang Li & Beibei Zhang & Jinchao Ma & Baoquan Cheng, 2023. "Unraveling the U-Shaped Linkage: Population Aging and Carbon Efficiency in the Construction Industry," Sustainability, MDPI, vol. 15(17), pages 1-15, September.
    3. Yiqun Wu & Yuan Sun & Congyue Zhou & Yonghua Li & Xuanli Wang & Huifang Yu, 2023. "Spatial–Temporal Characteristics of Carbon Emissions in Mixed-Use Villages: A Sustainable Development Study of the Yangtze River Delta, China," Sustainability, MDPI, vol. 15(20), pages 1-21, October.
    4. Mingxia Shi & Yibo Wang, 2023. "Do Green Transfer Payments Contribute to Carbon Emission Reduction?," Sustainability, MDPI, vol. 15(5), pages 1-18, February.
    5. Wenqiang Guo & Siqi Chen & Ming Lei, 2023. "Evolutionary Game and Strategy Analysis of Carbon Emission Reduction in Supply Chain Based on System Dynamic Model," Sustainability, MDPI, vol. 15(11), pages 1-22, June.
    6. Kailun Fang & Suzana Ariff Azizan & Yifei Wu, 2023. "Low-Carbon Community Regeneration in China: A Case Study in Dadong," Sustainability, MDPI, vol. 15(5), pages 1-15, February.
    7. András Szeberényi & Tomasz Rokicki & Árpád Papp-Váry, 2022. "Examining the Relationship between Renewable Energy and Environmental Awareness," Energies, MDPI, vol. 15(19), pages 1-25, September.
    8. Bin Xiong & Qi Sui, 2023. "Does Carbon Emissions Trading Policy Improve Inclusive Green Resilience in Cities? Evidence from China," Sustainability, MDPI, vol. 15(17), pages 1-16, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Susheng Wang & Gang Chen & Xue Han, 2021. "An Analysis of the Impact of the Emissions Trading System on the Green Total Factor Productivity Based on the Spatial Difference-in-Differences Approach: The Case of China," IJERPH, MDPI, vol. 18(17), pages 1-18, August.
    2. Weng, Zhixiong & Liu, Tingting & Wu, Yufeng & Cheng, Cuiyun, 2022. "Air quality improvement effect and future contributions of carbon trading pilot programs in China," Energy Policy, Elsevier, vol. 170(C).
    3. Zhang, Yue-Jun & Cheng, Hao-Sen, 2021. "The impact mechanism of the ETS on CO2 emissions from the service sector: Evidence from Beijing and Shanghai," Technological Forecasting and Social Change, Elsevier, vol. 173(C).
    4. Wu, Rongxin & Tan, Zhizhou & Lin, Boqiang, 2023. "Does carbon emission trading scheme really improve the CO2 emission efficiency? Evidence from China's iron and steel industry," Energy, Elsevier, vol. 277(C).
    5. Liu, Jing-Yue & Zhang, Yue-Jun, 2021. "Has carbon emissions trading system promoted non-fossil energy development in China?," Applied Energy, Elsevier, vol. 302(C).
    6. Chen, Xing & Lin, Boqiang, 2021. "Towards carbon neutrality by implementing carbon emissions trading scheme: Policy evaluation in China," Energy Policy, Elsevier, vol. 157(C).
    7. Chen, Zhe & Song, Pei & Wang, Baolu, 2021. "Carbon emissions trading scheme, energy efficiency and rebound effect – Evidence from China's provincial data," Energy Policy, Elsevier, vol. 157(C).
    8. Zhang, Shengling & Wang, Yao & Hao, Yu & Liu, Zhiwei, 2021. "Shooting two hawks with one arrow: Could China's emission trading scheme promote green development efficiency and regional carbon equality?," Energy Economics, Elsevier, vol. 101(C).
    9. Wang, Xu & Zhu, Lei & Fan, Ying, 2018. "Transaction costs, market structure and efficient coverage of emissions trading scheme: A microlevel study from the pilots in China," Applied Energy, Elsevier, vol. 220(C), pages 657-671.
    10. Yan Xiao & Yan Zhang & Jiekuan Zhang, 2023. "The Impact of Carbon Emission Trading on Industrial Green Total Factor Productivity," Sustainability, MDPI, vol. 15(7), pages 1-18, April.
    11. Lijie Wei & Zhibao Wang, 2022. "Differentiation Analysis on Carbon Emission Efficiency and Its Factors at Different Industrialization Stages: Evidence from Mainland China," IJERPH, MDPI, vol. 19(24), pages 1-14, December.
    12. Chen, Zhongfei & Zhang, Xiao & Chen, Fanglin, 2021. "Do carbon emission trading schemes stimulate green innovation in enterprises? Evidence from China," Technological Forecasting and Social Change, Elsevier, vol. 168(C).
    13. Di Zhou & Xiaoyu Liang & Ye Zhou & Kai Tang, 2020. "Does Emission Trading Boost Carbon Productivity? Evidence from China’s Pilot Emission Trading Scheme," IJERPH, MDPI, vol. 17(15), pages 1-16, July.
    14. Hu, Yucai & Li, Ranran & Du, Lei & Ren, Shenggang & Chevallier, Julien, 2022. "Could SO2 and CO2 emissions trading schemes achieve co-benefits of emissions reduction?," Energy Policy, Elsevier, vol. 170(C).
    15. Hu, Yucai & Ren, Shenggang & Wang, Yangjie & Chen, Xiaohong, 2020. "Can carbon emission trading scheme achieve energy conservation and emission reduction? Evidence from the industrial sector in China," Energy Economics, Elsevier, vol. 85(C).
    16. Bai, Caiquan & Liu, Hangjuan & Zhang, Rongjie & Feng, Chen, 2023. "Blessing or curse? Market-driven environmental regulation and enterprises' total factor productivity: Evidence from China's carbon market pilots," Energy Economics, Elsevier, vol. 117(C).
    17. Zhou, Anhua & Xin, Ling & Li, Jun, 2022. "Assessing the impact of the carbon market on the improvement of China's energy and carbon emission performance," Energy, Elsevier, vol. 258(C).
    18. Yang, Lisha & Li, Yutianhao & Liu, Hongxun, 2021. "Did carbon trade improve green production performance? Evidence from China," Energy Economics, Elsevier, vol. 96(C).
    19. Xiaosheng Li & Yunxia Shu & Xin Jin, 2022. "Environmental regulation, carbon emissions and green total factor productivity: a case study of China," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(2), pages 2577-2597, February.
    20. Liu, Yu & Tan, Xiu-Jie & Yu, Yang & Qi, Shao-Zhou, 2017. "Assessment of impacts of Hubei Pilot emission trading schemes in China – A CGE-analysis using TermCO2 model," Applied Energy, Elsevier, vol. 189(C), pages 762-769.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:14:y:2022:i:16:p:10216-:d:890406. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.