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Examining the Impact of Market Segmentation on Carbon Emission Intensity in China

Author

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  • Tianmiao Guo

    (School of Economics, Ocean University of China, Qingdao 266100, China)

  • Jian Li

    (School of Economics, Ocean University of China, Qingdao 266100, China
    Institute of Marine Development, Ocean University of China, Qingdao 266100, China)

  • Fengyue Gao

    (School of Economics, Ocean University of China, Qingdao 266100, China)

  • Shuhua Zhang

    (School of Economics, Ocean University of China, Qingdao 266100, China)

Abstract

Market segmentation behavior has led to environmental issues, notably, carbon emissions, during China’s economic transformation, posing a significant challenge to ongoing economic progress. This study builds upon the existing literature and empirical analyses on market segmentation and carbon emissions, establishing a theoretical framework to understand the relationship between market segmentation and carbon emission intensity. Using a panel dataset covering Chinese provinces from 2003 to 2020, we systematically examined the impact and transmission mechanisms of market segmentation on carbon emission intensity. This study revealed the following findings: (1) there is a significant positive correlation between market segmentation and carbon emission intensity, which remains true after a series of robustness tests; (2) the promoting effect of market segmentation on carbon emission intensity in the eastern region is significantly lower than that in the central and western regions and, as time goes by, the promoting effect of market segmentation on carbon emission intensity becomes smaller and smaller; (3) resource mismatch and industrial structure are two important transmission channels through which market segmentation affects carbon emission intensity; (4) market segmentation demonstrated a distinct positive spatial contagion impact on carbon emission intensity. This study provides valuable policy recommendations to align with China’s ‘dual carbon goals’ by supporting a unified market and fostering low-carbon development. These recommendations aim to steer China’s economy toward a greener and low-carbon transformation.

Suggested Citation

  • Tianmiao Guo & Jian Li & Fengyue Gao & Shuhua Zhang, 2023. "Examining the Impact of Market Segmentation on Carbon Emission Intensity in China," Sustainability, MDPI, vol. 15(24), pages 1-19, December.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:24:p:16672-:d:1296518
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    1. Jinfang Sun & Wenkai Li & Kaixiang Zhu & Mengqi Zhang & Haihao Yu & Xiaoyu Wang & Guodong Liu, 2024. "Research on Industrial CO 2 Emission Intensity and Its Driving Mechanism Under China’s Dual Carbon Target," Sustainability, MDPI, vol. 16(23), pages 1-14, December.
    2. Li, Shuqi & Xu, Nuo, 2024. "Fair Competition Review System and cross-regional capital flow: Evidence from China," Finance Research Letters, Elsevier, vol. 70(C).

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