Can Emission Trading Scheme Improve Carbon Emission Performance? Evidence From China
This paper explores the effect of China’s emission trading scheme (ETS) pilot policy implemented during 2013-2014 on carbon emission performance. Adopting the Difference-in-Difference (DID) model, we find that: 1) China’s ETS pilot policy can significantly improve the carbon emission performance of...
| Main Authors: | , , , , |
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| Format: | Article |
| Language: | English |
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Frontiers Media S.A.
2021-09-01
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| Series: | Frontiers in Energy Research |
| Subjects: | |
| Online Access: | https://www.frontiersin.org/articles/10.3389/fenrg.2021.759572/full |
| _version_ | 1818656525755875328 |
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| author | Yuhua Zheng Xiaoyang Sun Chenyu Zhang Daojuan Wang Ju Mao |
| author_facet | Yuhua Zheng Xiaoyang Sun Chenyu Zhang Daojuan Wang Ju Mao |
| author_sort | Yuhua Zheng |
| collection | DOAJ |
| description | This paper explores the effect of China’s emission trading scheme (ETS) pilot policy implemented during 2013-2014 on carbon emission performance. Adopting the Difference-in-Difference (DID) model, we find that: 1) China’s ETS pilot policy can significantly improve the carbon emission performance of listed companies in the pilot provinces. 2) The heterogeneity analysis shows that the carbon emission performance of listed companies in the eastern coastal pilot areas has improved significantly, which is not significant in the central and western pilot areas. 3) We find that China’s ETS pilot policy can significantly improve innovation capabilities of listed companies, suggesting that innovation is a channel for the impact of the China’s ETS pilot policy on carbon emission performance in the pilot provinces. Overall, our study shows that ETS pilot policy has played a governance role in China and improved carbon emission performance. We further highlight some important policy implications with respect to helping companies save energy and reduce emissions, and promoting the further improvement of China’s ETS pilot policy. |
| first_indexed | 2024-12-17T03:26:58Z |
| format | Article |
| id | doaj.art-1e7451e34a7f4dc89ef22832fd65e2cf |
| institution | Directory Open Access Journal |
| issn | 2296-598X |
| language | English |
| last_indexed | 2024-12-17T03:26:58Z |
| publishDate | 2021-09-01 |
| publisher | Frontiers Media S.A. |
| record_format | Article |
| series | Frontiers in Energy Research |
| spelling | doaj.art-1e7451e34a7f4dc89ef22832fd65e2cf2022-12-21T22:05:22ZengFrontiers Media S.A.Frontiers in Energy Research2296-598X2021-09-01910.3389/fenrg.2021.759572759572Can Emission Trading Scheme Improve Carbon Emission Performance? Evidence From ChinaYuhua Zheng0Xiaoyang Sun1Chenyu Zhang2Daojuan Wang3Ju Mao4Business School, Beijing Technology and Business University, Beijing, ChinaSchool of Economics and Management, China University of Labor Relations, Beijing, ChinaBusiness School, Beijing Technology and Business University, Beijing, ChinaAalborg University Business School, Aalborg University, Aalborg, DenmarkBusiness School, Renmin University of China, Beijing, ChinaThis paper explores the effect of China’s emission trading scheme (ETS) pilot policy implemented during 2013-2014 on carbon emission performance. Adopting the Difference-in-Difference (DID) model, we find that: 1) China’s ETS pilot policy can significantly improve the carbon emission performance of listed companies in the pilot provinces. 2) The heterogeneity analysis shows that the carbon emission performance of listed companies in the eastern coastal pilot areas has improved significantly, which is not significant in the central and western pilot areas. 3) We find that China’s ETS pilot policy can significantly improve innovation capabilities of listed companies, suggesting that innovation is a channel for the impact of the China’s ETS pilot policy on carbon emission performance in the pilot provinces. Overall, our study shows that ETS pilot policy has played a governance role in China and improved carbon emission performance. We further highlight some important policy implications with respect to helping companies save energy and reduce emissions, and promoting the further improvement of China’s ETS pilot policy.https://www.frontiersin.org/articles/10.3389/fenrg.2021.759572/fullemission trading scheme (ETS)carbon emission performancecorporate innovationdifference-in-difference (DID)carbon emission intensityChina |
| spellingShingle | Yuhua Zheng Xiaoyang Sun Chenyu Zhang Daojuan Wang Ju Mao Can Emission Trading Scheme Improve Carbon Emission Performance? Evidence From China Frontiers in Energy Research emission trading scheme (ETS) carbon emission performance corporate innovation difference-in-difference (DID) carbon emission intensity China |
| title | Can Emission Trading Scheme Improve Carbon Emission Performance? Evidence From China |
| title_full | Can Emission Trading Scheme Improve Carbon Emission Performance? Evidence From China |
| title_fullStr | Can Emission Trading Scheme Improve Carbon Emission Performance? Evidence From China |
| title_full_unstemmed | Can Emission Trading Scheme Improve Carbon Emission Performance? Evidence From China |
| title_short | Can Emission Trading Scheme Improve Carbon Emission Performance? Evidence From China |
| title_sort | can emission trading scheme improve carbon emission performance evidence from china |
| topic | emission trading scheme (ETS) carbon emission performance corporate innovation difference-in-difference (DID) carbon emission intensity China |
| url | https://www.frontiersin.org/articles/10.3389/fenrg.2021.759572/full |
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