Impacts of emission trading scheme on technological progress: A case study in China
Despite its significant role in mitigating climate change, technology was usually exogenously treated in evaluating climate policy, particularly emission trading scheme (ETS); such treatment cannot comprehensively reveal how ETS affects technological progress. To narrow this research gap, we attempt...
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| Format: | Article |
| Language: | English |
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Elsevier
2024-01-01
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| Series: | Heliyon |
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| Online Access: | http://www.sciencedirect.com/science/article/pii/S2405844023103343 |
| _version_ | 1827367285384282112 |
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| author | Shuyang Chen |
| author_facet | Shuyang Chen |
| author_sort | Shuyang Chen |
| collection | DOAJ |
| description | Despite its significant role in mitigating climate change, technology was usually exogenously treated in evaluating climate policy, particularly emission trading scheme (ETS); such treatment cannot comprehensively reveal how ETS affects technological progress. To narrow this research gap, we attempt to endogenize ETS-induced technological change in this paper. A dynamic recursive Computable General Equilibrium (CGE) model is employed to quantify ETS-induced progress of clean technology (PCT) and efficiency improvement. The Chinese nationwide ETS is taken as a case study. The CGE model results show that PCT negatively affects anthropogenic emissions, while efficiency improvement decreases GDP loss or abatement cost. Simultaneously considering both technological progress increases emission abatement but slightly decreases GDP in the long term. The most interesting finding is that PCT moderates the relationship between efficiency improvement and emission abatement. Hence, PCT is crucial in emission abatement and economic growth under climate policy. |
| first_indexed | 2024-03-08T09:04:21Z |
| format | Article |
| id | doaj.art-5687720e31e94484b6510075c3000d91 |
| institution | Directory Open Access Journal |
| issn | 2405-8440 |
| language | English |
| last_indexed | 2024-03-08T09:04:21Z |
| publishDate | 2024-01-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Heliyon |
| spelling | doaj.art-5687720e31e94484b6510075c3000d912024-02-01T06:30:49ZengElsevierHeliyon2405-84402024-01-01101e23126Impacts of emission trading scheme on technological progress: A case study in ChinaShuyang Chen0State Key Joint Laboratory of Environmental Simulation and Pollution Control (SKLESPC), School of Environment, Tsinghua University, Beijing, 100084, PR ChinaDespite its significant role in mitigating climate change, technology was usually exogenously treated in evaluating climate policy, particularly emission trading scheme (ETS); such treatment cannot comprehensively reveal how ETS affects technological progress. To narrow this research gap, we attempt to endogenize ETS-induced technological change in this paper. A dynamic recursive Computable General Equilibrium (CGE) model is employed to quantify ETS-induced progress of clean technology (PCT) and efficiency improvement. The Chinese nationwide ETS is taken as a case study. The CGE model results show that PCT negatively affects anthropogenic emissions, while efficiency improvement decreases GDP loss or abatement cost. Simultaneously considering both technological progress increases emission abatement but slightly decreases GDP in the long term. The most interesting finding is that PCT moderates the relationship between efficiency improvement and emission abatement. Hence, PCT is crucial in emission abatement and economic growth under climate policy.http://www.sciencedirect.com/science/article/pii/S2405844023103343Emission trading schemeProgress of clean technologyTechnological progressEfficiency improvementComputable general equilibrium modelChina |
| spellingShingle | Shuyang Chen Impacts of emission trading scheme on technological progress: A case study in China Heliyon Emission trading scheme Progress of clean technology Technological progress Efficiency improvement Computable general equilibrium model China |
| title | Impacts of emission trading scheme on technological progress: A case study in China |
| title_full | Impacts of emission trading scheme on technological progress: A case study in China |
| title_fullStr | Impacts of emission trading scheme on technological progress: A case study in China |
| title_full_unstemmed | Impacts of emission trading scheme on technological progress: A case study in China |
| title_short | Impacts of emission trading scheme on technological progress: A case study in China |
| title_sort | impacts of emission trading scheme on technological progress a case study in china |
| topic | Emission trading scheme Progress of clean technology Technological progress Efficiency improvement Computable general equilibrium model China |
| url | http://www.sciencedirect.com/science/article/pii/S2405844023103343 |
| work_keys_str_mv | AT shuyangchen impactsofemissiontradingschemeontechnologicalprogressacasestudyinchina |