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Impact of Carbon Trading System on Green Economic Growth in China

Author

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  • Xin Nie

    (School of Public Administration, Guangxi University, No 100, Da Xue Road, Nanning 530004, China
    China Center for Agricultural Policy (CCAP), School of Advanced Agricultural Sciences, Peking University, No 5, Yi He Yuan Road, Beijing 100871, China
    Department of City and Regional Planning, University of North Carolina at Chapel Hill, Chapel Hill, NC 27599, USA)

  • Zhoupeng Chen

    (School of Public Administration, Guangxi University, No 100, Da Xue Road, Nanning 530004, China)

  • Linfang Yang

    (School of Public Administration, Guangxi University, No 100, Da Xue Road, Nanning 530004, China)

  • Qiaoling Wang

    (School of Public Administration, Guangxi University, No 100, Da Xue Road, Nanning 530004, China)

  • Jiaxin He

    (School of Public Administration, Guangxi University, No 100, Da Xue Road, Nanning 530004, China)

  • Huixian Qin

    (School of Public Administration, Guangxi University, No 100, Da Xue Road, Nanning 530004, China)

  • Han Wang

    (School of Public Administration, Guangxi University, No 100, Da Xue Road, Nanning 530004, China
    China Center for Agricultural Policy (CCAP), School of Advanced Agricultural Sciences, Peking University, No 5, Yi He Yuan Road, Beijing 100871, China
    Department of City and Regional Planning, University of North Carolina at Chapel Hill, Chapel Hill, NC 27599, USA)

Abstract

Whether China’s economy can maintain sustainable growth has been debated both in China and internationally, and the most representative critique has been summarized in the “Krugman Query”. Faced with such doubts, how to achieve a “win-win” for economic growth and environmental protection has become one of the central objectives of local government work while striving for the new vision of development. Taking China’s carbon trading pilot policy as an example, and based on panel data of 30 provincial administrative regions in China from 2001 to 2018, this paper uses the Data Envelopment Analysis-Malmquist index model and the Propensity Score Matching-Difference in Difference method to measure the level of green economic growth from two aspects: green development mode and economic growth effect, and further explore the impact of China’s carbon trading system on green economic growth. The results show that the implementation of the carbon trading system promoted both the green development level and economic growth of pilot cities, and positively affected green total factor productivity, refuting the “Krugman Query”. Finally, the study puts forward a series of recommendations in strengthening environmental regulation, improving green technology innovation, and developing low-carbon industries.

Suggested Citation

  • Xin Nie & Zhoupeng Chen & Linfang Yang & Qiaoling Wang & Jiaxin He & Huixian Qin & Han Wang, 2022. "Impact of Carbon Trading System on Green Economic Growth in China," Land, MDPI, vol. 11(8), pages 1-16, July.
    • Handle: RePEc:gam:jlands:v:11:y:2022:i:8:p:1199-:d:876205
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    2. Zhichao Li & Bojia Liu, 2023. "Understanding Carbon Emissions Reduction in China: Perspectives of Political Mobility," Land, MDPI, vol. 12(4), pages 1-18, April.
    3. Jianpei Li & Jierui Huang & Bowen Li, 2024. "Do command‐and‐control environmental regulations realize the win‐win of “pollution reduction” and “efficiency improvement” for enterprises? Evidence from China," Sustainable Development, John Wiley & Sons, Ltd., vol. 32(4), pages 3271-3292, August.
    4. Henryk Dzwigol & Aleksy Kwilinski & Oleksii Lyulyov & Tetyana Pimonenko, 2023. "The Role of Environmental Regulations, Renewable Energy, and Energy Efficiency in Finding the Path to Green Economic Growth," Energies, MDPI, vol. 16(7), pages 1-18, March.

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