Research on the impact of carbon emission trading on GTFP

Abstract

Faced with the serious environmental pollution caused by greenhouse gas emissions, the Chinese government has put forward the target of controlling greenhouse gas emissions in the 12th Five-Year Plan and adopted a series of measures. Among them, the pilot policy of carbon emission trading is an important market-oriented instrument, which aims to control carbon dioxide emissions through the market mechanism. This paper studies the impact of this policy on GTFP, using the DID model to analyze the data of 30 provinces from 2004 to 2020. The study finds that the pilot carbon emission trading policy has significantly promoted the improvement of GTFP in the pilot areas. Moreover, the impact of policies on GTFP can be realized through two mechanisms: technological innovation and industrial structure upgrading. The impact of this policy is particularly significant in the central and western regions. These conclusions are of great significance for promoting green and low-carbon transformation, reducing carbon emissions and improving relevant carbon trading policies.