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Environmental and economic effects of China's carbon market pilots: Empirical evidence based on a DID model

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Date
2021-01-10
Authors
Qi, S
Cheng, S
Cui, J
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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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Journal article
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https://hdl.handle.net/10161/24200
Published Version (Please cite this version)
10.1016/j.jclepro.2020.123720
Publication 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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Cui

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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