IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v16y2024i2p841-d1321779.html
   My bibliography  Save this article

Can the Carbon Emissions Trading Pilot Policy Improve the Ecological Well-Being Performance of Cities in China?

Author

Listed:
  • Jianfeng Guo

    (School of Economics and Management, Xi’an University of Posts & Telecommunications, Xi’an 710061, China)

  • Xiaotong Ou

    (School of Economics and Management, Xi’an University of Posts & Telecommunications, Xi’an 710061, China)

  • Yan Li

    (School of Economics and Management, Xi’an University of Posts & Telecommunications, Xi’an 710061, China)

  • Kecheng Liu

    (Henley Business School, University of Reading, Reading RG6 6UR, UK)

Abstract

Adhering to ecological priorities and promoting environmental regulations is essential for improving ecological well-being performance (EWP); conversely, EWP is a crucial measure of social and economic sustainability. From the perspective of high-quality development, we see China’s cities’ adoption of the carbon emissions trading pilot (CETP) policy as a quasi-natural experiment, and we use the difference-in-differences (DID) approach to analyze how market-based carbon credits affect the urban EWP and its action mechanism. The findings of the empirical study show that: (1) The implementation of CETP can effectively improve the quality of urban development, with an increase of 29.1% in the EWP value, effectively contributing to the realization of the goal of high-quality development; (2) the urban EWP levels in China are higher in the east, lower in the west and lowest in the middle, but they all show a fluctuating upward trend; (3) according to the heterogeneity study, the implementation of CETP has a scale effect and significant urban locational differences, and its impact on EWP of cities is greater in “advanced cities” and central region cities; (4) the implementation of CETP can advance industrial structure upgrading, thereby promoting the EWP level, but the mediating effect of technological innovation is not significant. The possible innovations in this paper are as follows: (1) It broadens the existing research system on the effectiveness of CETP policies. (2) It reconstructs the index system of EWP from the perspective of high-quality development so that its measurement results can reflect the quality of urban development more comprehensively. (3) The research samples of CETP and EWP are enriched by using prefectural-level data.

Suggested Citation

  • Jianfeng Guo & Xiaotong Ou & Yan Li & Kecheng Liu, 2024. "Can the Carbon Emissions Trading Pilot Policy Improve the Ecological Well-Being Performance of Cities in China?," Sustainability, MDPI, vol. 16(2), pages 1-19, January.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:2:p:841-:d:1321779
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/16/2/841/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/16/2/841/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Karen Palmer & Wallace E. Oates & Paul R. Portney & Karen Palmer & Wallace E. Oates & Paul R. Portney, 2004. "Tightening Environmental Standards: The Benefit-Cost or the No-Cost Paradigm?," Chapters, in: Environmental Policy and Fiscal Federalism, chapter 3, pages 53-66, Edward Elgar Publishing.
    2. Hu, Hui & Qi, Shaozhou & Chen, Yuanzhi, 2023. "Using green technology for a better tomorrow: How enterprises and government utilize the carbon trading system and incentive policies," China Economic Review, Elsevier, vol. 78(C).
    3. Jana Stoever & John P. Weche, 2018. "Environmental Regulation and Sustainable Competitiveness: Evaluating the Role of Firm-Level Green Investments in the Context of the Porter Hypothesis," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 70(2), pages 429-455, June.
    4. Tone, Kaoru, 2002. "A slacks-based measure of super-efficiency in data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 143(1), pages 32-41, November.
    5. Wang, Miao & Feng, Chao, 2021. "The win-win ability of environmental protection and economic development during China's transition," Technological Forecasting and Social Change, Elsevier, vol. 166(C).
    6. Huan Zhang & Jingyu Wu, 2022. "The Energy Saving and Emission Reduction Effect of Carbon Trading Pilot Policy in China: Evidence from a Quasi-Natural Experiment," IJERPH, MDPI, vol. 19(15), pages 1-25, July.
    7. Desrochers, Pierre & Haight, Colleen E., 2014. "Squandered profit opportunities? Some historical perspective on industrial waste and the Porter Hypothesis," Resources, Conservation & Recycling, Elsevier, vol. 92(C), pages 179-189.
    8. Fare, Rolf & Shawna Grosskopf & Mary Norris & Zhongyang Zhang, 1994. "Productivity Growth, Technical Progress, and Efficiency Change in Industrialized Countries," American Economic Review, American Economic Association, vol. 84(1), pages 66-83, March.
    9. Cole, Matthew A. & Elliott, Robert J. R., 2003. "Determining the trade-environment composition effect: the role of capital, labor and environmental regulations," Journal of Environmental Economics and Management, Elsevier, vol. 46(3), pages 363-383, November.
    10. Wu, Linfei & Sun, Liwen & Qi, Peixiao & Ren, Xiangwei & Sun, Xiaoting, 2021. "Energy endowment, industrial structure upgrading, and CO2 emissions in China: Revisiting resource curse in the context of carbon emissions," Resources Policy, Elsevier, vol. 74(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Xing Zhao & Yifan Guo & Zhen Liu & Anteng Xiu, 2023. "Boosting green recovery: the impact of green fiscal policy on green total factor productivity," Economic Change and Restructuring, Springer, vol. 56(4), pages 2601-2619, August.
    2. Zhangsheng Liu & Xiaolu Zhang & Liuqingqing Yang & Yinjie Shen, 2021. "Access to Digital Financial Services and Green Technology Advances: Regional Evidence from China," Sustainability, MDPI, vol. 13(9), pages 1-14, April.
    3. Elfarra, Barakat & Yasmeen, Rizwana & Shah, Wasi Ul Hassan, 2024. "The impact of energy security, energy mix, technological advancement, trade openness, and political stability on energy efficiency: Evidence from Arab countries," Energy, Elsevier, vol. 295(C).
    4. Fan Wang & Lili Feng & Jin Li & Lin Wang, 2020. "Environmental Regulation, Tenure Length of Officials, and Green Innovation of Enterprises," IJERPH, MDPI, vol. 17(7), pages 1-16, March.
    5. Zhou, Lin & Fan, Jianshuang & Hu, Mingzhi & Yu, Xiaofen, 2024. "Clean air policy and green total factor productivity: Evidence from Chinese prefecture-level cities," Energy Economics, Elsevier, vol. 133(C).
    6. Sun, Yu & Yang, Feng & Wang, Dawei & Ang, Sheng, 2023. "Efficiency evaluation for higher education institutions in China considering unbalanced regional development: A meta-frontier Super-SBM model," Socio-Economic Planning Sciences, Elsevier, vol. 88(C).
    7. Shilin Ye & Xinhua Qi & Yecheng Xu, 2020. "Analyzing the relative efficiency of China’s Yangtze River port system," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 22(4), pages 640-660, December.
    8. Che, Shuai & Wang, Jun & Chen, Honghang, 2023. "Can China's decentralized energy governance reduce carbon emissions? Evidence from new energy demonstration cities," Energy, Elsevier, vol. 284(C).
    9. Nocera Alves Junior, Paulo & Costa Melo, Isotilia & de Moraes Santos, Rodrigo & da Rocha, Fernando Vinícius & Caixeta-Filho, José Vicente, 2022. "How did COVID-19 affect green-fuel supply chain? - A performance analysis of Brazilian ethanol sector," Research in Transportation Economics, Elsevier, vol. 93(C).
    10. Yanli Li & Jiayuan Li & Luyao Gan, 2022. "A Meta-Analysis of the Relationship between Environmental Regulations and Competitiveness and Conditions for Its Realization," IJERPH, MDPI, vol. 19(13), pages 1-12, June.
    11. Bresciani, Stefano & Puertas, Rosa & Ferraris, Alberto & Santoro, Gabriele, 2021. "Innovation, environmental sustainability and economic development: DEA-Bootstrap and multilevel analysis to compare two regions," Technological Forecasting and Social Change, Elsevier, vol. 172(C).
    12. Zhenyu Jiang & Zongjun Wang & Yanqi Zeng, 2020. "Can voluntary environmental regulation promote corporate technological innovation?," Business Strategy and the Environment, Wiley Blackwell, vol. 29(2), pages 390-406, February.
    13. Mengchao Yao & Yihua Zhang, 2021. "Evaluation and Optimization of Urban Land-Use Efficiency: A Case Study in Sichuan Province of China," Sustainability, MDPI, vol. 13(4), pages 1-22, February.
    14. Xiao, Yi & Qi, Guanqiu & Jin, Mengjie & Yuen, Kum Fai & Chen, Zhuo & Li, Kevin X., 2021. "Efficiency of Port State Control inspection regimes: A comparative study," Transport Policy, Elsevier, vol. 106(C), pages 165-172.
    15. Jie Li & Zhengchuan Sun & Qin Gao & Yanbin Qi, 2024. "Evaluation of Cropland Utilization Eco-Efficiency and Influencing Factors in Primary Grain-Producing Regions of China," Agriculture, MDPI, vol. 14(2), pages 1-18, February.
    16. Zhang, Yijun & Song, Yi, 2022. "Tax rebates, technological innovation and sustainable development: Evidence from Chinese micro-level data," Technological Forecasting and Social Change, Elsevier, vol. 176(C).
    17. Satoshi Honma, 2015. "Does international trade improve environmental efficiency? An application of a super slacks-based measure of efficiency," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 4(1), pages 1-12, December.
    18. Honma, Satoshi, 2014. "Does international trade improve environmental efficiency? An application of a super slacks-based measurement of efficiency," MPRA Paper 56950, University Library of Munich, Germany.
    19. Adel Hatami-Marbini & Aliasghar Arabmaldar & John Otu Asu, 2022. "Robust productivity growth and efficiency measurement with undesirable outputs: evidence from the oil industry," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 44(4), pages 1213-1254, December.
    20. Jin, Chenfei & Tsai, Fu-Sheng & Gu, Qiuyang & Wu, Bao, 2022. "Does the porter hypothesis work well in the emission trading schema pilot? Exploring moderating effects of institutional settings," Research in International Business and Finance, Elsevier, vol. 62(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:16:y:2024:i:2:p:841-:d:1321779. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.