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Carbon emissions trading policy, carbon finance, and carbon emissions reduction: evidence from a quasi-natural experiment in China

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  • Qianqian Guo

    (Huaqiao University)

  • Zhifang Su

    (Huaqiao University)

  • Chaoshin Chiao

    (National Dong Hwa University)

Abstract

The purpose of this paper is to explore whether the implementation of carbon emissions trading policy (CETP) promotes carbon finance, proxied by investment and financing facilitating carbon emissions reduction (IFCER), and reduces carbon emissions. Evidence shows that first, CETP is effective in stimulating IFCER and reducing carbon emissions. Second, the effects of CETP persist over time. Third, the effects of CETP taking effect in pilot regions can spill over to non-pilot regions nearby. Fourth, the effect is more pronounced in eastern and wealthy regions. Finally, R&D and industrial upgrading have a mediating effect linking CETP to IFCER and carbon emissions.

Suggested Citation

  • Qianqian Guo & Zhifang Su & Chaoshin Chiao, 2022. "Carbon emissions trading policy, carbon finance, and carbon emissions reduction: evidence from a quasi-natural experiment in China," Economic Change and Restructuring, Springer, vol. 55(3), pages 1445-1480, August.
    • Handle: RePEc:kap:ecopln:v:55:y:2022:i:3:d:10.1007_s10644-021-09353-5
    DOI: 10.1007/s10644-021-09353-5
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    More about this item

    Keywords

    Carbon emissions trading policy; Investment and financing facilitating carbon emissions reduction; Carbon emissions reduction; Carbon finance;
    All these keywords.

    JEL classification:

    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General

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