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The Impact of Carbon Trading Policy on Breakthrough Low-Carbon Technological Innovation

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  • Chengyu Fang

    (School of Mathematical Sciences, Jiangsu University, Zhenjiang 212013, China)

  • Wanyi Wang

    (School of Finance and Economics, Jiangsu University, Zhenjiang 212013, China)

  • Weidong Wang

    (School of Finance and Economics, Jiangsu University, Zhenjiang 212013, China)

Abstract

This paper studies the impact of carbon trading policies on breakthrough low-carbon technological innovation through a difference-in-differences model based on the panel data of 30 provinces in China. Through descriptive statistics, regression analysis, a robustness test and heterogeneity analysis of the data, the results show that: (1) carbon trading policy has a significant effect on overall low-carbon technological innovation and gradual low-carbon technological innovation, and carbon trading policy lag can significantly promote breakthrough low-carbon technological innovation. (2) The timeliness of carbon trading policy in promoting breakthrough low-carbon technological innovation is different in different regions. The effect can quickly be displayed in some provinces, but there is a lag effect in other provinces. (3) Lags in carbon trading policy have promoted a significant increase in renewable energy technology patents and CCS-related technology patents, and contributed more to the increase in renewable energy technology patents.

Suggested Citation

  • Chengyu Fang & Wanyi Wang & Weidong Wang, 2023. "The Impact of Carbon Trading Policy on Breakthrough Low-Carbon Technological Innovation," Sustainability, MDPI, vol. 15(10), pages 1-13, May.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:10:p:8277-:d:1150782
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    References listed on IDEAS

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