Environmental and economic effects of China's carbon market pilots: Empirical evidence based on a DID model
Abstract
This paper investigates whether the China ETS policy has achieved carbon emission
reduction at the expense of economic development. Moreover, we are interested in unmasking
the role of the institutional factors adopted by the ETS pilots in their ETS effects.
Using the province-level panel data during the 2008–2016 period. we employ the DID
model to compare carbon emissions and economic development between the ETS and non-ETS
regions and between the pre- and post-ETS periods. Some novel empirical findings emerge.
First, compared with the non-ETS areas, the ETS policy has significantly reduced carbon
emission in the ETS areas. This emission reduction has not come at the cost of economic
development. Second, the ETS policy leads to a decline in carbon intensity and fossil
fuel energy consumption relative to all energy types. Lastly, some heterogeneity across
markets arise. The Beijing carbon market performs the best among all pilots in terms
of achieving targets of carbon reductions, followed by the Hubei carbon market.
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https://hdl.handle.net/10161/24200Published Version (Please cite this version)
10.1016/j.jclepro.2020.123720Publication Info
Qi, S; Cheng, S; & Cui, J (2021). Environmental and economic effects of China's carbon market pilots: Empirical evidence
based on a DID model. Journal of Cleaner Production, 279. pp. 123720-123720. 10.1016/j.jclepro.2020.123720. Retrieved from https://hdl.handle.net/10161/24200.This is constructed from limited available data and may be imprecise. To cite this
article, please review & use the official citation provided by the journal.
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Jingbo Cui
Associate Professor of Applied Economics at Duke Kunshan University
Bio: Dr. Jingbo Cui is an Associate Professor of Applied Economics at the Division
of Social Sciences and Environmental Research Center at Duke Kunshan University. Before
the current position, he was a Chu-Tian Junior Scholar from the Department of Education
in Hubei Province, an associate professor at the School of Economics and Management
at Wuhan University, a post-doctoral research associate, and visiting scholar at Iowa
State University. He holds a Ph.D. in economics fro

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