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Impact of Carbon Emission Trading Market on Regional Urbanization: an Empirical Study Based on a Difference-In-Differences Model

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  • Haoyuan Cheng

    (Institute of Western China Economic Research, Southwestern University of Finance and Economics, Chengdu, China)

  • Xiaoqian Liu

    (Research Institute of Economics and Management, Southwestern University of Finance and Economics, Chengdu, China)

  • Zhenlong Xu

    (Kogod Business School, American University, Washington, USA)

Abstract

China's carbon emission trading market has been formally established, but few studies have been conducted to analyze the impact of this policy on the regional urbanization level. Therefore, this paper evaluates whether the carbon trading pilot policy can enhance the regional urbanization level in China through the difference-in-differences method and analyzes the mediating role of industrial structure upgrading in this process. The results prove that the carbon trading market policy can accelerate the transformation and upgrading of industrial structure in the region so that it promotes the development of regional urbanization. Moreover, the effects of the policy are concentratedly manifested in the eastern region of China.

Suggested Citation

  • Haoyuan Cheng & Xiaoqian Liu & Zhenlong Xu, 2022. "Impact of Carbon Emission Trading Market on Regional Urbanization: an Empirical Study Based on a Difference-In-Differences Model," Economic Analysis Letters, Anser Press, vol. 1(1), pages 15-21, September.
    • Handle: RePEc:bba:j00004:v:1:y:2022:i:1:p:15-21:d:65
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    References listed on IDEAS

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    1. Montgomery, W. David, 1972. "Markets in licenses and efficient pollution control programs," Journal of Economic Theory, Elsevier, vol. 5(3), pages 395-418, December.
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    Cited by:

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    3. Yu Bai & Afnan Hassan & Xing Niu & Abdelmohsen A. Nassani, 2025. "How Renewable Energy, Environmental Policy Stringency, Trade Diversification Index, Impact Environmental Sustainability in G‐7 Nations," Natural Resources Forum, Blackwell Publishing, vol. 49(1), pages 911-925, February.
    4. Xiaowei Song & Jun Yang, 2024. "Assessing the impact of digitization and servitization of manufacturing firms in the context of carbon emission reduction: Evidence from a microsurvey in China," Energy & Environment, , vol. 35(7), pages 3340-3385, November.
    5. Jun Mao & Jiahao Xie & Zunguo Hu & Lijie Deng & Haitao Wu & Yu Hao, 2023. "Sustainable development through green innovation and resource allocation in cities: Evidence from machine learning," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(4), pages 2386-2401, August.
    6. Jing Rong & Wei Wang & Haijun Zhang, 2024. "Does artificial intelligence improve energy productivity in China's industrial sector? Empirical evidence based on the spatial moderation model," Energy & Environment, , vol. 35(8), pages 4026-4048, December.
    7. Lingli Qing & Peng Li & Yaode Wang & Usman Mehmood & Hind Alofaysan, 2025. "Non‐linear nexus of mineral rents, coal rents, foreign direct investment, and environmental sustainability: Importance of institutional quality in E‐7 nations," Natural Resources Forum, Blackwell Publishing, vol. 49(3), pages 2393-2414, August.

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