The impact of carbon emission trading scheme on export: Firm-level evidence from China
The carbon emission trading scheme (ETS) is an important measure to implement China’s “double carbon” strategy.We use “China’s carbon emission trading pilot policy” as a quasi-natural experiment to identify theeffect of this market-based environmental regulation on a firm’s export and its impacting...
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| Format: | Article |
| Language: | English |
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Frontiers Media S.A.
2022-10-01
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| Series: | Frontiers in Environmental Science |
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| Online Access: | https://www.frontiersin.org/articles/10.3389/fenvs.2022.1035650/full |
| _version_ | 1817979320506777600 |
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| author | Shubo Yang Qiangqiang Shen Atif Jahanger Atif Jahanger Penghao Ye Penghao Ye Huafeng Zhang Daniel Balsalobre-Lorente Daniel Balsalobre-Lorente |
| author_facet | Shubo Yang Qiangqiang Shen Atif Jahanger Atif Jahanger Penghao Ye Penghao Ye Huafeng Zhang Daniel Balsalobre-Lorente Daniel Balsalobre-Lorente |
| author_sort | Shubo Yang |
| collection | DOAJ |
| description | The carbon emission trading scheme (ETS) is an important measure to implement China’s “double carbon” strategy.We use “China’s carbon emission trading pilot policy” as a quasi-natural experiment to identify theeffect of this market-based environmental regulation on a firm’s export and its impacting mechanisms.Based on the Propensity score matching and difference-in-differences (PSM-DID) method, we observe robust evidence that the carbon emissions trading pilot policy significantly increases the export of regulated firms. And also find that this policy positivelyaffects the exports of both SOEs and non-SOEs. Considering enterprise heterogeneity, the policy positivelyimpacts the exports of FDI firms, large firms, and low industrial concentrations. Moreover, we examine how environmental regulation could affect firmexport through technological innovation, productivity, and product research. The observable evidence leads us to cautiously conclude thatmarket-based environmental regulations in even developing countries could achieve export growth.Based on our findings, we suggest that: 1) policymakers should limit CO2 emissions quotas to ensure an appropriate increase in the price of CO2 emissions; 2) to design a unified carbon ETS market, researchers should explore ways to activate market-oriented environmental regulation tools based on the carbon emission price. |
| first_indexed | 2024-04-13T22:41:21Z |
| format | Article |
| id | doaj.art-d99cc9e2551849b7ae7b0fbf3acc115b |
| institution | Directory Open Access Journal |
| issn | 2296-665X |
| language | English |
| last_indexed | 2024-04-13T22:41:21Z |
| publishDate | 2022-10-01 |
| publisher | Frontiers Media S.A. |
| record_format | Article |
| series | Frontiers in Environmental Science |
| spelling | doaj.art-d99cc9e2551849b7ae7b0fbf3acc115b2022-12-22T02:26:37ZengFrontiers Media S.A.Frontiers in Environmental Science2296-665X2022-10-011010.3389/fenvs.2022.10356501035650The impact of carbon emission trading scheme on export: Firm-level evidence from ChinaShubo Yang0Qiangqiang Shen1Atif Jahanger2Atif Jahanger3Penghao Ye4Penghao Ye5Huafeng Zhang6Daniel Balsalobre-Lorente7Daniel Balsalobre-Lorente8School of Big Data Application and Economics, Guizhou University of Finance and Economics, Guiyang, ChinaSchool of Business Administration, Zhongnan University of Economics and Law, Wuhan, ChinaSchool of Economics,Hainan University, Haikou, ChinaInstitute of Open Economy, Haikou, ChinaSchool of Economics,Hainan University, Haikou, ChinaInstitute of Open Economy, Haikou, ChinaSchool of Big Data Application and Economics, Guizhou University of Finance and Economics, Guiyang, ChinaDepartment of Political Economy and Public Finance, Economic and Business Statistics and Economic Policy, University of Castilla-La Mancha, Ciudad Real, SpainDepartment of Applied Economics, University of Alicante, Alicante, SpainThe carbon emission trading scheme (ETS) is an important measure to implement China’s “double carbon” strategy.We use “China’s carbon emission trading pilot policy” as a quasi-natural experiment to identify theeffect of this market-based environmental regulation on a firm’s export and its impacting mechanisms.Based on the Propensity score matching and difference-in-differences (PSM-DID) method, we observe robust evidence that the carbon emissions trading pilot policy significantly increases the export of regulated firms. And also find that this policy positivelyaffects the exports of both SOEs and non-SOEs. Considering enterprise heterogeneity, the policy positivelyimpacts the exports of FDI firms, large firms, and low industrial concentrations. Moreover, we examine how environmental regulation could affect firmexport through technological innovation, productivity, and product research. The observable evidence leads us to cautiously conclude thatmarket-based environmental regulations in even developing countries could achieve export growth.Based on our findings, we suggest that: 1) policymakers should limit CO2 emissions quotas to ensure an appropriate increase in the price of CO2 emissions; 2) to design a unified carbon ETS market, researchers should explore ways to activate market-oriented environmental regulation tools based on the carbon emission price.https://www.frontiersin.org/articles/10.3389/fenvs.2022.1035650/fullCarbon emission trading programmarket-basedenvironmentalregulationfirm exportsPSM-DID methodChina |
| spellingShingle | Shubo Yang Qiangqiang Shen Atif Jahanger Atif Jahanger Penghao Ye Penghao Ye Huafeng Zhang Daniel Balsalobre-Lorente Daniel Balsalobre-Lorente The impact of carbon emission trading scheme on export: Firm-level evidence from China Frontiers in Environmental Science Carbon emission trading program market-basedenvironmentalregulation firm exports PSM-DID method China |
| title | The impact of carbon emission trading scheme on export: Firm-level evidence from China |
| title_full | The impact of carbon emission trading scheme on export: Firm-level evidence from China |
| title_fullStr | The impact of carbon emission trading scheme on export: Firm-level evidence from China |
| title_full_unstemmed | The impact of carbon emission trading scheme on export: Firm-level evidence from China |
| title_short | The impact of carbon emission trading scheme on export: Firm-level evidence from China |
| title_sort | impact of carbon emission trading scheme on export firm level evidence from china |
| topic | Carbon emission trading program market-basedenvironmentalregulation firm exports PSM-DID method China |
| url | https://www.frontiersin.org/articles/10.3389/fenvs.2022.1035650/full |
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