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The impact of carbon emissions trading on agricultural economic development: Evidence from China's carbon emissions trading pilot policies

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  • Zhao, Wen
  • Zhang, Dongping
  • Zhao, Yufei

Abstract

This study uses a panel dataset of various provinces and cities in China from 2007 to 2022 to investigate the impact of carbon emissions trading on the agricultural economy, applying a difference-in-differences (DID) model. The findings indicate that carbon emissions trading serves as a driving force for the growth of the agricultural economy, primarily by improving agricultural technical efficiency. Additionally, a threshold effect is observed in the role of green technology innovation in this relationship. A heterogeneity analysis further reveals that carbon emissions trading has a significant positive effect on agricultural economic growth in the eastern region, while its impact is less pronounced in the central and western regions.

Suggested Citation

  • Zhao, Wen & Zhang, Dongping & Zhao, Yufei, 2025. "The impact of carbon emissions trading on agricultural economic development: Evidence from China's carbon emissions trading pilot policies," International Review of Economics & Finance, Elsevier, vol. 101(C).
    • Handle: RePEc:eee:reveco:v:101:y:2025:i:c:s1059056025003132
    DOI: 10.1016/j.iref.2025.104150
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